Beijing: China is facing a large income gap between its rich and poor, shows China's income distribution statistics, according to The Times of Israel.

China's Gini coefficient has grown sharply to 0.466 points in 2021, which is above the warning level set by the United Nations of 0.4. By comparison, countries such as Germany, Canada, and Japan all have estimated Gini coefficients that hover at just over 0.3.

According to The Times of Israel, there is a significant income gap between China's urban and rural households, as well as between different provinces in China. Beijing and Shanghai had a 2021 per capita income which was 227 per cent of the average national per capita income of USD 12,551.

At the other extreme, China's poorest province, Gansu, had a per capita income of just 51 per cent of the national average. This indicates a growing inequality in China, which can have serious social, economic, and political implications.

Workers have been left without the capabilities needed to excel in the high-skilled, high-wage jobs that are appearing as China's economy seeks to reach high-income status due to continued inequality in access to education and healthcare.

China's Hukou household registration system has left migrant workers without full access to healthcare, education, pension and unemployment benefits. The consequence is that a large segment of the population is living in relatively precarious conditions, as per The Times of Israel.

Only an estimated 16 per cent of rural migrants working in cities were covered by pension benefits, only 18 per cent had urban health insurance, and only ten per cent had unemployment insurance.