Core Points - The World Bank has established a new poverty line for 2025, which is based on purchasing power parity (PPP) rather than exchange rates, highlighting the actual prices of a basket of goods in different countries [4][5] - For high and middle-income countries, a daily consumption expenditure below $8.3 is considered poor, while for lower-income countries, the thresholds are set at $4.2 and $3.0 respectively [5][8] - In China, the equivalent of the $8.3 poverty line is approximately 33 RMB, indicating that households with per capita daily consumption below this amount are classified as poor [8][12] Summary by Categories Poverty Line Definitions - The extreme poverty line is set at a daily consumption of less than $3, applicable to the poorest countries [4] - The poverty line for lower-middle-income countries is defined as a daily consumption of less than $4.2 [4] - The poverty line for middle to high-income countries is defined as a daily consumption of less than $8.3 [5] Purchasing Power Parity (PPP) - The World Bank's poverty line is calculated using PPP, which accounts for the actual purchasing power of currencies in their respective countries [4][8] - The conversion ratio for RMB to USD based on 2021 data is 3.99, meaning that 33 RMB has a similar purchasing power to $8.3 [8] Hidden Costs in Consumption - The calculation of consumption expenditure includes not only cash income but also hidden benefits such as homegrown food, government services, and employer-provided benefits [9][11] - Virtual rent for homeowners is considered in the consumption calculation to reflect the true economic situation of households [11][12] - The aim is to provide a clearer picture of a household's ability to meet basic needs, including food, shelter, and healthcare [12][13]