Fairer income distribution hoped for in new policy

17 january 2013

BEIJING — Experts have called for raised income levels and deepened reform in monopolized industries, as the country’s general plan for income distribution reform is expected to be unveiled in October.

“Residents’ income growth has failed to keep up with social wealth growth. This is a strategic problem,” said Chang Xiuze, an analyst with the Academy of Macroeconomic Research under the National Development and Reform Commission, China’s top economic planner and the body responsible for drafting the plan.

In addition to strengthening growth in residents’ earnings, Chang said that the reform should address problems in industries dominated by State-owned enterprises.

The country needs to make sure that these industries with State-owned industrial property rights generate economic value that matches their scales, according to the analyst.

Specifically, the forthcoming plan should implement reforms in social security and health, and step up law enforcement concerning labor and wages, experts believe.

Liu Kegu, advisor to the China Development Bank, also said that the government should better fulfill its role in income redistribution and tax reform, in order to create a more fair and balanced distribution system.

China’s general plan for income distribution reform has been in the works for the past eight years.