His study also found average annual real household income growth fell from about 8% in 2013-18 to below 5% in 2018-23, hitting low- and middle-income groups hardest.
The findings challenge Beijing's common prosperity drive, as weak consumer demand, slowing growth, declining investment momentum and employment pressure complicate both wealth creation and distribution.
As China's wealth gap hits a historic high, is the 'common prosperity' dream already fading?
Can China's high-tech push fix its wealth gap, or will it leave the average family behind?
With government debt soaring, can Beijing boost household income without dismantling its state-led economic model?
China's Persistent Wealth Inequality: Housing Dominance, the Missing Rich, and Policy Challenges (2020–2024)
Overview
From 2020 to 2024, China's wealth inequality remained high, driven mainly by urban-rural income gaps, pension disparities, and concentrated asset income, especially housing wealth. The rapid growth of urban housing values widened the wealth gap, reinforced by institutional barriers like the hukou system and state-owned enterprise benefits. Although property tax pilots helped moderate housing inequality growth, deep-rooted challenges persist. Wealth concentration fuels social tensions and health disparities, while demographic aging increases precautionary savings, limiting consumption. Policy efforts stabilized the property market and expanded pension coverage but fell short of reducing inequality. Future reforms targeting pensions, wealth taxes, social safety nets, and institutional barriers are essential for more inclusive growth.