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flag China launches income reforms in 2026–2030 plan to reduce inequality amid rising urban gaps and AI-driven job shifts.

flag China is implementing income distribution reforms under its 15th Five-Year Plan (2026–2030) to reduce inequality, expanding public spending on social security, healthcare, and education. flag Despite progress since 1978—lowering the urban-rural income ratio to 2.34 and the Gini coefficient to 0.465 by 2024—inequality remains high, with urban disparities rising slightly and technological change, including AI and automation, threatening to deepen labor market polarization. flag The government emphasizes stronger redistribution through taxation and transfer payments, alongside institutional reforms, to ensure inclusive growth and long-term stability.

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