By Beth Main
The government has announced plans to raise the national minimum wage to 40% of the average urban salary by 2015, in order to address the growing wealth gap in China.
China’s economic boom benefited many and created a burgeoning middle class, but lots of rural communities and immigrant workers were left out of this success. The resulting wealth gap is a source of great tension and dissatisfaction in Chinese society, and the cause of no small amount of pants-wetting among CPC officials.
The government also announced that state owned enterprises will need to feed more of their profits back into the government to fund social security.
The BBC reports:
China’s Gini coefficient, which is a gauge of income disparity in a country, rose to 0.474 in 2012, higher than the 0.4 level analysts often cite as a threshold for potential social unrest.