Skip to content

Experts: Distribution of Income Is a Major Problem in China

At a press conference on February 29, 2012, Chi Fulin, the President of the China Institute for Reform and Development, stated that, in the near future, the government should introduce an income allocation plan that adjusts the allocation of capital  in order to improve public welfare. “At the present time, State-owned capital is invested in competitive markets. It pushes the private sector out and over-heats the investment market. More importantly, it cannot reflect the public ownership of the State’s capital and is not conducive to social fairness.”

Zhang Zhuoyuan, a research fellow at the Institute of Economics at China’s Academy of Social Science, expressed that China is probably the worst country when it comes to income distribution and is also the most confusing and chaotic. Recently, when he was looking at the breakdown on his pay statement, he discovered that his base salary accounts for less than 20% of his total income.

Source: Yangtse Evening Post reprinted at China Economic Net, February 29, 2012