Research

Source:Estimated by National Bureau of Statistics based on Urban/Rural Household Surveys, www.stats.gov.cn, accessed 2014

Figure 2.6
In 2013, China for the first time released its official estimation of national Gini index. The estimates range from 0.473 to 0.491 across China during 2003 and 2013, indicating a high level of income inequality though the trend towards rising inequality has been basically curbed in recent years. Rural-urban dual economy and unequal access to public services may contribute, together with other factors, to the high level of income inequality.

* (1) Although there are no internationally defined standard cut-off values, it’s commonly recognized that Gini index<0.2 corresponds perfect income equality, 0.2-0.3 corresponds relative equality, 0.3-0.4 corresponds relatively reasonable income gap, 0.4-0.5 corresponds high income disparity, above 0.5 corresponds severe income disparity. (2) China’s official estimates are higher than that of the World Bank, which is 0.42 for 2010 (the latest available estimation from the World Bank) and increased from around 0.29 in 1981.