China Approves New Measues to Tackle Income Inequality

The Chinese government has approved a new plan address wealth inequality, including a raise in the minimum wage.

Despite being a communist country, China has a growing problem with wealth inequality. Since starting to introduce economic liberalisation and reforms, which have been hugely successful in growing the country’s economy, the income gap between rich and poor has grown dramatically. Many people, especially in rural areas, are still living in absolute poverty; according the the People’s Daily newspaper close to 128 million Chinese citizens in rural areas are defined as poor by the government, meaning that they have an income of less that 2300 yuan ($368) per year.



  1. China is a capitalist country, not a communist country. It’s governing party can it itself whatever it wishes, but applying a name does not make it so. North American, European and East Asian multi-national corporations are earning huge profits through the use of Chinese sweatshops. Chinese wages for many years were about 5% that of the United States, and the wage increases of the past year or so will still keep them comfortably below 10%.

    A few well-connected locals cash in nicely over this arrangement. In other words, no real difference between this exploitation and the Western exploitations of Latin American labor or the labor of other places where repression keeps wages low.

    1. I agree, they have really turned themselves into a capitalist country. But the problem is that they cannot continue to follow this line whilst maintaining a one-party state. So now that they have grown the economy, they need to make an effort to deal with the inequality and increase wages or else people will rise up against them.

      1. The Chinese leaders themselves know that their system is unsustainable, and the large numbers of riots underscore that the people may indeed rise up against them.

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