[wisty]

I thought most Chinese are above the poverty line. 500 RMB a month (which is a terrible wage in most parts of China) is over $2 a day, which is over the poverty line.

I'm sure you can find people below $2 a day, not a sea.

There's two big issues - regional differences, and people from poor areas who try to survive in the big cities. Because wages (and the cost of living) are so different, someone from a poor area (i.e. a rural area, or a poor province) will not have any meaningful financial support from their family. But kids with parents in the rich areas get a lot more financial support.