Dichotomy of govt & people's income

Third, Tsinghua University professor Qin Hui has said that China's rapid development during the past three decades has benefited from its "advantage in low human rights". That workers rights and interests will be infringed upon if labor unions or other self-organized institutions cannot help them get their due sounds like a reasonable argument.

Fourth, China's tax collection and fiscal expenditure are not examined by the National People's Congress (NPC), and that plays a role in keeping people's income low. To solve these problems and transform China's growth pattern, we have no choice but to carry out fundamental institutional reform: Promote democracy, implement tax reduction and tax reimbursement policies, and break the monopoly of SOEs.

For that, the government's fiscal budget should be first supervised. Neither the NPC nor the Chinese People's Political Consultative Conference has been able to curb the government's power to impose taxes and or reduce the fiscal budget. Effective supervision could prevent excessive government funds from becoming "hardware" investment, and guide more government spending toward programs such as medical care, social security and basic education in order to improve people's lives.