The top 10 percent of the richest people in the world now has more Chinese than Americans. According to data from Credit Suisse (CS), 100 million of China’s wealthiest hold a spot in the top 10 percent of the world’s financially prosperous – a million more than the Americans in this category.
However, the U.S still boasts more millionaires than China, with 18.6 million (40 percent) of the planet’s aggregate against just 4.4 million from China. The rate at which millionaires are showing up is also higher in the U.S. The report claims that low interest rates and tax cuts are responsible for the United States’ 11th year in a row of climbing riches. The typical American citizen is also around 700 percent more affluent than the average citizen in China.
Even though the trade war has taken a toll on China’s economy, the country is still flourishing when it comes to global wealth accumulation.
“Trade conditions and debt levels are causing concern, but signs for the coming years are otherwise fairly positive,” Credit Suisse noted in the annual Global Wealth Report. The report also outlined some details regarding global wealth distribution. The bottom half of adults own less than 1 percent of the world’s entire wealth, the top 10 percent control roughly 82 percent, and the top 1 percent of adults have nearly 50 percent of the world’s assets.
To be classed in the top 10 percent of the richest people around the globe, you would need around $110,000 in net assets, and to get into the top 1 percent, you’d need a little over $936,000. Although the share of wealth for the top 1 percent has continued to rise, the bottom 90 percent now control 18 percent of the world’s riches – an increase of 11 percent from the start of the century. According to Credit Suisse, the share owned by the top 1 percent has dropped somewhat since 2016.
“While it is too early to say that wealth inequality is now in a downward phase, the prevailing evidence suggests that 2016 may have been the peak for the foreseeable future,” the report says.