Social Tensions in a Growing China

In spite of fast growth and increasing average income levels, China’s development has been uneven across various sectors and regions. This uneven development has reduced the life satisfaction of many people and has caused social tensions. Using four rounds of the Chinese Household Income Project data, this paper investigates social tensions caused by inequality, poverty and polarization across rural and urban areas, and across the Eastern, Central and Western regions, and between the emerging super provinces/megacities and the rest. It shows that although tensions have been significantly alleviated by fast economic growth, the impact of growth imbalances is still very severe. China should focus on more balanced growth in addition to a high rate of growth.