>> Sreenivasan: FOR MOST OF THE LAST CENTURY, GETTING RICH IN
CHINA WAS AGAINST THE RULES. THE COMMUNIST GOVERNMENT'S
PLANNED ECONOMY SAW TO THAT. BUT THINGS CHANGE IN THE 1980s
WHEN THEN LEADER DENG XIAOPING'S RALLYING CRY WAS "TO GET RICH IS
GLORIOUS." TODAY, PRESIDENT XI JINPING'S
ANTI-CORRUPTION CAMPAIGN HAS RESULTED IN A CRACKDOWN ON
OSTENTATIOUS DISPLAYS OF WEALTH. IT COMES WITH ONE CLEAR MESSAGE:
A LIFE OF LUXURY MUST COME SECOND TO COMMUNIST PARTY
LOYALTY. ALL THIS AS CHINA PRODUCES
BILLIONAIRES FASTER THAN ANY COUNTRY IN THE WORLD.
WITH SUPPORT FROM THE PULITZER CENTER WE CONTINUE OUR SERIES,
"CHINA: POWER AND PROSPERITY" WITH NEWSHOUR SPECIAL
CORRESPONDENT KATRINA YU REPORTING FROM BEIJING.
>> Reporter: THEIR PACING IS PRECISE, THEIR SPACING IS
SEAMLESS, AND THEIR POURS ARE PERFECT.
THIS IS CHINA'S FIRST BUTLER ACADEMY AND THEY'RE PRACTICING
THE EXACT VINTAGE POUR. THEIR SIX-WEEK COURSE INCLUDES
CENTURIES-OLD TRADITIONS. BUT THESE STUDENTS AREN'T BEING
TRAINED TO SERVE OLD WEALTH. THEIR FUTURE EMPLOYERS WILL BE
MEMBERS OF CHINA'S NEW RICH. IN COMMUNIST CHINA, MILLIONAIRES
ARE BEING MINTED FASTER THAN ANYWHERE ELSE.
THEY'RE FILLING HARBORS WITH MULTI-MILLION DOLLAR YACHTS,
WATCHING LASER LIGHT SHOWS AT $3,000 A NIGHT HOTELS AND BUYING
LUXURIES. SARA JANE HO KNOWS ALL ABOUT THE
POSSIBILITIES AND PRESSURES OF BEING WEALTHY IN CHINA.
>> AVERAGE PRICE HERE IS PROBABLY $1,000 U.S., NOT TOO
EXPENSIVE AT ALL. >> Reporter: THE 34-YEAR-OLD HAS
BEEN CALLED CHINA'S "MILLENNIAL MARTHA STEWART," AND FOUNDED THE
COUNTRY'S FIRST FINISHING SCHOOL.
MANY OF HER STUDENTS ARE SECOND GENERATION RICH, BORN IN THE 80s
AND 90s, AND BORN INTO MILLIONS. >> IN NO OTHER COUNTRY THAN
CHINA HAVE YOU HAD SUCH A GREAT AMOUNT OF CHANGE IN SUCH A
SHORT AMOUNT OF TIME. AND NOW THEY HAVE SO MUCH MONEY
THAT THE LAST THING THEY WANT TO DO IS SEE THEIR KIDS GO THROUGH
ANY KIND OF HARDSHIP. FOR THE KIDS, A LOT OF IT IS
ABOUT INDIVIDUALITY. THEY WANT TO SPEND ON SOMETHING
THAT OTHER PEOPLE DON'T HAVE. >> Reporter: SARA JANE IS AN
EXPERT ON WHERE TO SHOP, WHAT TO WEAR, AND WHERE TO BE SEEN.
AT AN UP-MARKET ITALIAN RESTAURANT IN DOWNTOWN SHANGHAI,
SARA JANE SHARES HER MICHELIN-STARRED MEAL WITH HER
SOCIAL MEDIA FOLLOWERS. >> TASTES SO GOOD.
GOES WITH ROSE WINE. SEA URCHIN TACO.
>> Reporter: LUNCH COSTS ABOUT $400, THAT'S THE EQUIVALENT OF A
MONTHLY MIDDLE-INCOME SALARY. >> WHEN YOU MAKE SO MUCH MONEY
IN SUCH A SHORT AMOUNT OF TIME, IT ACTUALLY PLACES A LOT OF
PRESSURE ON AN INDIVIDUAL. THERE'S NO OLD MONEY IN CHINA
BECAUSE OF HISTORICAL REASONS. A LOT OF PEOPLE WERE VERY POOR,
I MEAN EVERYBODY WAS VERY POOR, UP UNTIL THE 90s.
>> Reporter: ACCUMULATING WEALTH IN COMMUNIST CHINA WAS ONCE
CONSIDERED COUNTER REVOLUTIONARY.
MAO ZEDONG CAME TO POWER IN 1949 VOWING TO ELIMINATE CLASS AND
ABOLISH CAPITALISM. AFFLUENT FAMILIES LOST THEIR
WEALTH AND MANY LOST THEIR LIVES AS MAO PURSUED HIS UTOPIAN
VISION OF COMMUNISM. THAT VISION RESULTED IN THE
DEATHS OF TENS OF MILLIONS FROM FAMINE, AND LEFT ALMOST 90% OF
THE POPULATION LIVING IN EXTREME POVERTY.
THAT ALL CHANGED IN THE 1980s, WHEN LEADER DENG XIAOPING
LOOSENED STATE CONTROL OVER CHINA'S ECONOMY AND PERMITTED
PRIVATE ENTERPRISE, REFORMS WHICH WOULD TURN THE COUNTRY
INTO THE WORLD'S SECOND LARGEST ECONOMY.
40 YEARS LATER, CHINESE CITIES HAVE BECOME SHOPPING MECCAS
CATERING TO CHINA'S RAPIDLY EXPANDING MIDDLE-CLASS, AND
UPPER CLASS. CHINESE CONSUMERS MAKE UP A
THIRD OF THE $1.3 TRILLION GLOBAL LUXURY MARKET.
AND LUXURY SPENDING IS EXPECTED TO GROW BY OVER 10% THIS YEAR.
IT'S A TREND TAO LIANG HAS IN THE BAG.
THE 26-YEAR-OLD IS KNOWN AS "MR. BAGS," AN ENTREPRENEUR AND ONE
OF THE COUNTRY'S TOP ONLINE INFLUENCERS.
HE HAS MILLIONS OF LOYAL FANS WHO HANG ON HIS EVERY
RECOMMENDATION. DURING AN ONLINE CAMPAIGN LAST
YEAR, HIS COMPANY SOLD HALF A MILLION DOLLARS WORTH OF BAGS IN
JUST SIX MINUTES. >> DEFINITELY SOME CHINESE GIRLS
BUY BAGS BECAUSE THEY WANT BIG BRANDS, THEY WANT PEOPLE TO KNOW
THEY'RE RICH, THEY WANT PEOPLE TO KNOW THEY'RE TASTEFUL.
BUT NOWADAYS, I THINK A LOT OF CHINESE WOMEN WHEN THEY BUY BAGS
THEY REALLY BUY BAGS BECAUSE THEY WANT TO PURSUE HAPPINESS.
>> Reporter: INTERNATIONAL BRANDS ARE WORKING HARD TO
CONTRIBUTE TO THE HAPPINESS AND HANDBAG COLLECTIONS OF CHINESE
CONSUMERS. BUT THEY DON'T ALWAYS GET IT
RIGHT. LAST NOVEMBER, DOLCE AND GABBANA
STOKED FURY AFTER RELEASING THIS ADVERTISING CAMPAIGN IN CHINA.
CHINESE SOCIAL MEDIA USERS ACCUSED THE BRAND OF
REINFORCING RACIST STEREOTYPES. CONSUMER BACKLASH RESULTED IN
DOLCE AND GABBANA BEING BANNED FROM CHINESE ONLINE RETAILERS.
LAST MONTH VERSACE, GIVENCHY AND COACH ISSUED APOLOGIES AFTER
PRINTING T-SHIRTS DESCRIBING HONG KONG AND TAIWAN AS SEPARATE
FROM CHINA. FALL OUTS WITH FOREIGN FASHION
LABELS HAVE DEMONSTRATED THE POWER OF CHINA'S INCREASINGLY
WEALTHY POPULATION. BUT BEING WEALTHY IN CHINA HAS
ITS LIMITS. WHEN IT COMES TO THE CHINESE
GOVERNMENT, BEING TOO RICH CAN BE RISKY.
CHINESE PRESIDENT XI JINPING HAS LAUNCHED AN ANTI-CORRUPTION
CAMPAIGN AND OVERSEEN INVESTIGATIONS INTO THE
COUNTRY'S WEALTHIEST AND MOST POWERFUL.
MORE THAN 100,000 HAVE BEEN JAILED FOR EMBEZZLEMENT AND
BRIBERY, OTHERS FIRED FOR THROWING LAVISH PARTIES AND
INDULGING IN EXPENSIVE LIQUOR. OSTENTATIOUS WEALTH IS REGULARLY
DENOUNCED ON STATE MEDIA AND PRIMETIME TV.
THE HIT TELEVISION SHOW "FATHER WHERE ARE WE GOING?," WAS
CANCELLED BECAUSE OF ITS PORTRAYAL OF SPOILED SECOND
GENERATION RICH CHILDREN. COMMENTATOR AND ACADEMIC ZHU
DAKE SAYS IT'S IN THE GOVERNMENT'S INTEREST TO REIGN
IN "CRAZY RICH" BEHAVIOR. >> (\translated\): THE CHINESE
GOVERNMENT KNOWS THAT IF RICH PEOPLE SHOW OFF THEIR WEALTH TOO
MUCH, IT WILL DEEPEN THE IMPRESSION OF THE SOCIAL
POLARIZATION BY ORDINARY PEOPLE. THE CHINESE GOVERNMENT REQUIRES
RICH PEOPLE TO BE LOW-KEY, AND POOR PEOPLE TO BE CONTENTED WITH
THEIR LIFE. THEN THE COUNTRY WOULD BE
STABLE. >> Reporter: CHINA'S
ULTRA-WEALTHY MUST CLOSELY ALIGN THEMSELVES WITH THE GOVERNMENT.
JACK MA, A TECH TYCOON WITH AN ESTIMATED $40 BILLION FORTUNE,
IS A MEMBER OF THE COMMUNIST PARTY.
>> I LIKE-- I FEEL PROUD, FOR WHAT PRESIDENT XI SAID
YESTERDAY. >> Reporter: MOVIE STAR JACKIE
CHAN ROUTINELY DEFENDS BEIJING, AND ATTACKS INTERNATIONAL
CRITICS. LAST MONTH, THE HONG KONG
RESIDENT DESCRIBED PRO-DEMOCRACY PROTESTS IN THE CITY AS "SAD AND
DEPRESSING," AND CALLED HIMSELF A PROTECTOR OF THE CHINESE FLAG.
>> (\translated\): YOU MUST FIRSTLY BE ON THE SAME SIDE AS
THE GOVERNMENT, SO THE GOVERNMENT CAN FEEL THEY MADE
YOU SUCCESSFUL. ALL OF THE SUCCESSFUL PEOPLE
SHOULD STAND ON THE SAME SIDE WITH THE GOVERNMENT.
IF YOU DO NOT SUPPORT THEM, THEY WILL MAKE YOU UNSUCCESSFUL.
>> Reporter: THE GOVERNMENT HAS VOWED TO ERADICATE POVERTY BY
2020, SAYING IT'S LIFTED 83 MILLION RURAL POOR OUT OF
POVERTY OVER THE LAST SIX YEARS. BUT ACCORDING TO THE WORLD BANK,
MANY MORE REMAIN BEHIND. 27% OF THE COUNTRY'S POPULATION,
500 MILLION PEOPLE, CONTINUE TO LIVE ON LESS THAN $5.50 A DAY.
AND WHILE SOME STRUGGLE TO PUT A ROOF OVER THEIR HEAD, OTHERS
BUILD ROOFS, FOR THEIR DOGS. ZHOU TIANXIAO SPENT HALF A
MILLION DOLLARS ON A PET PARADISE FOR HIS BORDER COLLIE
SYLAR. COMPLETE WITH A TRAINING GYM, A
DOG-THEMED PARTY SPACE, AND AN INDOOR DOGGIE POOL.
ZHAO TIANXIAO GREW HIS FORTUNE SELLING PET PRODUCTS ONLINE.
HE SHOWED US A WALL DECORATED WITH PHOTOS OF HIS BEST FRIEND
WHO HE CREDITS WITH LIFTING HIM OUT OF DEPRESSION.
>> (\translated\): IT'S LIKE RAISING A CHILD.
I HAVE DEEP AFFECTION FOR MY DOG, I RARELY TAKE PHOTOS OF
MYSELF. WHEN SOMEONE ASKS ME, HOW SHOULD
I INTRODUCE YOU, I SAY "CALL ME SYLAR'S DAD."
HE'S INTEGRATED INTO EVERY PART OF MY LIFE.
>> Reporter: IN CHINA, THE RICHEST 1% OWN A THIRD OF THE
COUNTRY'S WEALTH. ZHOU SAYS HE'S BOMBARDED ONLINE
BY CRITICS WHO QUESTION HIS CHOICE TO SPLURGE ON A DOG WHILE
MILLIONS MUST FIGHT TO SURVIVE. BUT THE ONLY OPINION HE CARES
ABOUT IS SYLAR'S. >> (\translated\): HE NEVER
CARES ABOUT WHO YOU ARE OR YOUR SOCIAL STATUS.
PEOPLE THINK I'M SOME SILVER-SPOON KID WASTING MY
PARENT'S MONEY BY GIVING MY DOG A LIFE OF LUXURY.
THAT'S NOT TRUE. I'VE WORKED HARD AND EXPERIENCED
CHALLENGES. >> Reporter: AND AS THE GAP
BETWEEN CHINA'S RICH AND POOR CONTINUES TO GROW ZHOU REFUSES
TO APOLOGIZE FOR HIS LIFESTYLE. >> (\translated\): IT'S NORMAL
TO BE CRITICIZED, I DON'T CARE. PART OF THE MONEY YOU EARN PAYS
FOR THE CRITICISM YOU BEAR. MY MIND IS AT PEACE.
>> Reporter: IN CHINA, IT SEEMS THERE'S VERY LITTLE MONEY CAN'T
BUY. FOR THE PBS NEWSHOUR, I'M
KATRINA YU, IN BEIJING.