Reforms will target income redistribution

China’s Ministry of Human Resources and Social Security has held a press conference to highlight progress being made in bridging the country’s widening wealth gap. Reforms on redistribute income are entering the drafting phase.

China’s long-awaited reforms on income distribution is set to be drafted in the coming months. Thursday’s press conference reported its progress.

Yin Chengji, Spokesman of Ministry of Humann Resources and Social Security, said, “The State Council put high emphasis on reform. The detailed draft are expected to be published before the end of this year. Our ministry’s work will mainly reform the income systems of state organs, state-owned enterprises and institutional units.”

Over the past decade, the gap between the rich and poor has widened considerably.

According to a report released by the Ministry of Human Resources and Social Security in 2011, income growth for Chinese residents was far below growth in fiscal and corporate income. It said that China’s per capita income grew 13.7 percent from 2002 to 2011, much slower than the 20.4 percent growth in government fiscal revenues during the same period.

The government is now taking concrete steps to increase social fairness and justice by narrowing the widening wealth gap.