Chapter Four China’s Income Distribution and Development

Production and distribution are two fundamental problems that are linked with human society. This chapter discusses the current inequality of income using resident income data in the China Statistical Yearbook for several years. It examines present current income differentials and the trend of development from the discrepancies between urban residents' incomes, between rural residents' incomes and between urban and rural residents' incomes. The chapter provides some policy proposals aimed at reducing income differentials. Overall income differentials can be divided into urban income differentials, rural income differentials, and the differential between urban and rural incomes. In 2010, the government focused on reforming the income distribution system in order to restrain the tendency of unceasing expansion in income distribution disparities. The income redistribution system is an important component of the income distribution system and plays an influential role in restraining the expansion of income differentials. Keywords: China Statistical Yearbook ; income differentials; income distribution system; rural income differentials; urban income differentials