Since　China　began　economic　reform　and　opening　up,　policies　have　been　implemented　to　open　the　country　to　the　outside　world　and　to　create　an　economic　system　based　on　free　competition.　The　pursuit　of　efficiency　and　market　allocation　has　brought　great　economic　development　and　prosperity.　However,　these　policies　have　also　widened　the　income　gap　between　members　of　society,　resulting　in　the　Gini　coefficient　remaining　high　and　even　once　breaking　through　the　＂International　Warning　Line＂.　Presently,　China　has　changed　from　a　nation　with　a　relatively　small　income　gap　into　one　with　some　of　the　largest　income　inequality　in　the　world.　This　has　detonated　a　series　of　social　problems　-　so　much　so　that　the　calls　for　reform　of　the　current　income　distribution　system　are　growing　louder.　It　is　therefore　of　the　utmost　urgency　to　carry　out　such　reform.　©　2017　World　Scientific　Publishing　Co.　Pte.　Ltd.