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China’s Income Disparity Widening

According to China Economic Weekly under the People’s Daily, since the opening of the economy began, China has transitioned from a country with a narrow income disparity to being one of those with the largest income disparity. “On the surface, it is a matter of the economy, but at a deeper level, it is a matter of system and policy.” A proposed guidance on redistributing revenue was submitted to the State Council for approval close to six months ago and it remains pending. The guidance was meant to “smooth the distribution structure among the State, enterprises and the people.”

The BBC reported that China's disparity "has gone beyond the reasonable limit" according to many commentators. There is a strange situation existing in China. That is, while the poor have increased hatred and dissatisfaction, the rich are also complaining about society due to the increasing violence and crimes.

1. Chinese Economic Weekly, 41th Issue, 2009
2. BBC Chinese, October 27, 2009

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