At a high-level symposium presided by Chinese President Hu Jintao in July 2006, participants agreed that reforming and standardizing the income distribution system is crucial to China as the country's economic reform and development is at a critical juncture.
Calling the reform "an important issue in China's political and economic life", President Hu said in a speech that the Communist Party of China Central Committee would strive to defend social equality and close the wealth gap by raising the income of the low-paid, expanding the size of the middle classes, wiping out illegitimate incomes and putting a curb on excessively high salaries.
Under a new wage system, low-rank civil servants will have more opportunities to receive larger salaries and subsidies if they work in remote and poverty-stricken areas. The government will allocate more funds for retirement pensions and grant more subsidies to low-income families and retired people including revolutionary veterans.