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Falling inequality will help China 'rebalance' economy

Thursday, March 12, 2015


Inequality in China.


'Income distribution' is the social issue of greatest concern to the Chinese public, according to opinion polls by Xinhua and the People's Daily ahead of the National People's Congress (NPC) currently underway in Beijing. However, the latest data from China's National Bureau of Statistics (NBS) indicate, paradoxically, that income inequality has actually narrowed for six successive years.


  • Though falling, inequality is still high enough to weaken political stability.
  • Greater equality will not earn the government as much popular support as cracking down on official corruption and conspicuous consumption.
  • Urbanisation and household registration (hukou) reform will redress imbalances that have disadvantaged people from rural areas.
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