With the implementation of policy of reform and opening up,it brings about booming economy growth,while the gap between rich and poor is also rapidly widening in China.The income gap between urban and rural residents is accelerated. The monopoly industries get high profit with the privilege of monopoly. Compared with the residents in eastern areas ,average personal income and living standard in central and western regions is still at a low level. How to ease the huge pressure which caused by the widening gap is one of the precondition to ensure the sustainable economy development of China.

     There are many reasons result in this phenomenon.On one hand, our country is still at the primary stage of socialism, national policy tilt to eastern costal cities, uneven economy development,incomplete social security system,some rural residents and minority are not well –educated, the government department control too much social resources,all these have a certain influence on the inequality in wealth.On the other hand, since China’s entry into WTO,some industries are heavily impacted then bring about a part of unemployment, the advancement of since and technology calls for many high-tech labours, The shortage of advanced skilled workers also lead to the structural unemployment and widening the income gap again.

     How to diminish the gap between rich and poor? Firstly,government should promote rural economy growth,strength infrastructure construction in poor areas,try to increase peasent’s income and creat more employment opportunities.Secondly,more reasonable income distribution system and social security system should be built to promote social harmony and prosperity.Lastly,we should enlarge employment channel,improve skills of labour force,encourage more investors to develop in central and western regions to enhance the economic strength and residents' income of these areas.

     Anyway,narrow the gap between the rich and poor is a lengthy process and we still have a long way to go.The government and general public should all take more measures to make our life more beautiful.