Q: It's indisputable that the policy of encouraging some
regions and people to get rich first has widened the gap between
rich and poor, though it is the last thing the Chinese Government
wants to see. It is also reported that China's Gini Coefficient has
surpassed the international alert level, which is likely to give
rise to hatred of the rich by the poor. What does the Chinese
Government think of this and what will be done to prevent it from
further widening?
A: To a certain extent, disparity between rich and poor is
inevitable in the development of an economy. It takes time to
encourage some people to become rich first and then further achieve
a common prosperity, and China is on the way. There is no such
reform that can benefit 1.3 billion people at one time. The
situation must be one of some people benefiting more from the
policy, and others less. But on a general level, the livelihood of
Chinese people has been widely improved.
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Meanwhile, it is observed that the wealth gap between urban and
rural residents is growing wider. Some urban movers and shakers can
earn as much as millions in a year. But as long as a person is
doing legitimate business, they deserve respect for making a
fortune via their own talent and ability. However, there are some
people making money through moonlighting and corruption, and the
government is determined to stamp out such activities.
Chinese people have long emphasized egalitarianism, and there's
an old saying that goes, "Inequality is much worse than
insufficiency." The thought is that to be equalized is to be fair
and disparity is unjust. As a result, the widening wealth gap has
bred hatred toward the rich.
This gap also mirrors the lack of means and functions for
distribution and redistribution. To solve the problem, we are
intensifying our efforts in perfecting the social security system
to help the disadvantaged. In rural areas, more are being done in
poverty alleviation. The central finance has increased input in
rural infrastructure construction to improve the production and
living in the countryside. In urban areas, we have established a
minimum living standard guarantee system, which covers more than 20
million people. As well, more job opportunities are created to help
laid-off workers get reemployed as soon as possible.
On the other hand, the government is working to deepen reform of
the income distribution system to settle the distribution problem
at its primary stage. Legal, economic and administrative means will
be adopted in this regard. For instance, the benchmark of
nontaxable income would be raised to reduce the tax burden on
low-income earners. In the meantime, special consumption tax will
be levied on luxury consumer items such as luxurious housing,
limos, expensive clothing and cosmetics, costly banquets, pets and
over-the-top entertainment. Revenues of the special consumption tax
will be used to set up a fund for poverty alleviation in order to
narrow the wealth gap.
In addition, China has openly pledged to concentrate on building
a prosperous society with a higher standard in an all-around way to
the benefit the more than 1 billion people in the first two decades
of this century. Fully aware of the possible negative effects that
the widening wealth gap might bring to China's economy and society,
the Chinese Government is shifting its policy of encouraging some
people to become rich first to the goal of building an overall
well-off society.
Tibetan farming family goes on a
sightseeing trip in their own car to Lhasa, capital of Tibet
Autonomous Region.
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