China increases their redistribution policies, perhaps due to their higher income inequality

An article from The Economist discusses how China has lowered its qualification for poverty. The earnings level to be qualified as “poor” has decreased from people earning less than 2,300 yuan a year to 1,196 a year. This is good for poor citizens since some of them now qualify for benefits which previously they had been denied access to.

I view this as a reflection of the notion discussed in class of countries with higher income inequality having more policies of wealth redistribution. China has developed a very large gap in income in recent years from rapid growth after reducing trade barriers and opening up to investment from other countries. This income gap may finally have increased to the point where more redistribution policies are called for.

The article can be found here:
http://www.economist.com/node/21541080