Reform and Urban Bias in China

Reform and Urban Bias in China

Income inequalities between urban and rural areas remain high in China, but the gap has begun to narrow. Peasant incomes have increased dramatically since the post-Mao reforms. Rural areas have new power, but this is a consequence not a cause of the reforms. The improvement in rural conditions reflects a change in the central state's development strategy and ideology, and the local response to incentives embedded in China's reforms.