Narrowing the wealth gap

Comprehensive reforms must be carried out to realize just and fair rebalancing between the haves and have-nots

The year 2010 marked the beginning of a new era for China, which overtook Japan to become the world's second largest economy, with a per capita GDP of $4,412.

Economic history tells us that a country's economic and social development will take a different course after its per capita GDP exceeds $4,000. If handled well, its economy will enjoy a relatively long period of rapid growth, resulting in higher per capita GDP. If the economy is not managed well, there will be fluctuations, even regression, resulting in the so-called middle-income trap characterized by capital centralization and widening income gaps. This leads to an imbalanced economic structure and sluggish domestic demand.