Many policies and measures for poverty alleviation have been undertaken by the Chinese government, but few researchers have explored its experience and lessons. This research focuses on household needs like food, clothing, housing, household equipment, transportation and communication, education, entertainment, and healthcare; and also focuses on food items such as grains, meat, eggs, milk, vegetables, fruits and others in urban China. In poor households, the average disposable income per capita is less than or near per capita expenditure; and the Engels coefficient is often over 40%. The diet is also not according to international health dietary requirements.

The data used in this study is from 1990-2014 at the provincial level from National Bureau of Statistics of China (NBSC). The authors used the two-stage AIDS (Almost Ideal Demand System) to estimate the price elasticity and expenditure elasticity of household expenditures on the above households needs. According to the results, it is recommended that the Chinese government should improve economic policies, especially its food policy to alleviate the poverty of low income urban residents.