Despite the drip-down theory furphy, that claims that making the rich richer first will gradually spread wealth to the poor, experience suggests that it has credence only for apoogists of the capitalist model, and the rich themselves. Indeed massive income gaps are part and parcel of the capitalism package. It does not work well without it.

Add to that a Chinese culture where the consistent key motivation is to separate yourself from the masses and sometimes your own history by the display of power remains constant in all of the communist, monarachy, capitalist and feudal systems.

Put together with China's massive consumer potential and the development of equally massive extremes of wealth is possible.

The UK Observer reports that China's elite shrug off growing poverty gap - "...there are tens, perhaps several hundreds, of millions of losers after nearly 25 years of post-Mao reform. The gap between rich and poor has more than doubled in the same period. Delegates at this year's National People's Congress - China's annual parliament - which ended on Friday in Beijing have voiced growing concern over rural poverty, urban unemployment and official corruption..."

Marketers and Advertisers sensibly are targeting the middle and upper middle class in the cities. While much spin has been forthcoming about the Chinese consumer, history suggests to us that the great majority of Chinese will remain poor.

History also teaches us that while income differentials are key to consumerism and growth in the capitalist model, when drawn too far they result in political instability and revolution.

The day when China can boast a broad-based middle-ground consumer similar to that achieved in the USA is much further away than most think.