Experts said that China's increasing income gap not only indicates issues of income distribution, but also the present condition of China's economy, according to Xinhua.

The vice president of China Society of Economic Reform (CSER) Fan Gang said on the 100th Chang'an Forum that the increasingly large income gap has mainly stemmed from three sources including system and structure, issues arising on the developing progress of society and defects in public policies.

China is going through a transitional phase from planned economy to market economy and is certain to experience income gap.

Although China's GDP ranks as the leading position worldwide, the per capita GDP is lower. These problems of agriculture, rural areas and farmers, differences between urban and rural areas and among regions have resulted from underdeveloped economy and developing progress. In a sense, income gap would arise in any developing countries.

To solve these problems basically, China needs to deepen reform and increase employment to realize full employment.

When talking about public policies, Fan said that there are many things to be improved by governments at all levels such as how to protect low income classes, expand the population of poverty alleviation, ensure education and medical care of low income classes.

Fan said that solving income distribution needs to deepen reform as well as improve short-term public policies. Restructuring system and developing economy is a long-term process.

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