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China’s Income Distribution System Reform and Income Growth Strategy

DOI: 10.4236/oalib.1102660, PP. 1-11

Subject Areas: Political Economy, Economics, Development Economics

Keywords: Income Distribution Gap, Income Distribution System Reform, Currency Reform, Income Growth Strategy

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The reform of the income distribution system is an important part of the economic system reform, is an important reflection of economic development and social progress, and is an important guarantee for building a harmonious socialist society. The income distribution gap of our country is mainly reflected in the large income gap between urban and rural areas, the large regional income gap, the large income gap between different industries, and the large internal income gap within enterprise, which has directly impacted on the building progress of a well-off society. We must adhere to the principle of income distribution in socialist society: “from each according to his ability, to each according to his work”, and increasing the proportion of labor-factor income in the total income year by year, until exceeding the levels of the developed capitalist countries. In addition to salary, the human resources also participate in the distribution of the enterprise’s profit in the form of capital. The risk gain obtained from capital is divided into three parts among enterprise, bank and depositor in a certain proportion. The quality level of the most basic product is proportional to the value of the minimum unit of currency. To reform the income distribution system, the country can set up 7 job positions, with each position divided into 7 levels; therefore, the income can be distributed according to the distribution coefficient table, and has an annual increment at the rate of 10%.

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Liu, J. (2016). China’s Income Distribution System Reform and Income Growth Strategy. Open Access Library Journal, 3, e2660. doi:


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