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Chinanews, Beijing, August 10 – In 2004, the average net annual income of Chinese farmers was 2,936 yuan, and the figure leaped to 3,255 yuan in 2005, the first time to break the 3,000-yuan mark, which means that farmers in China are able to spend more on their personal development and entertainment, considering that their average expenditure1 on basic necessities is 1,500 yuan per capita every year.
Take Shandong Province as an example, where the farmers netted an annual income of 3,000 yuan per capita in 2003. Since then, consumption in the rural areas there has started to soar at a speed faster than income growth. The living conditions of Henan farmers can well illustrate2 this, too. In 2006, their average annual income reached 3,261.03 yuan, and their average expenditure that year was 2,229.28 yuan, 16.2% higher than in 2005, faster than expenditure growth in cities in Henan.
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