Xi takes aim at China’s wealthiest to address income inequality, but the answer may lie with local government

President Xi has focused on halting the wealth expansion of Chinese tech giants, but some analysts say local government retain too large a share of national income, writes William Yang

Chinese President Xi Jinping (AP)

Xi has made poverty alleviation one of the central missions of his regime since he came to power in 2012 and China does have a serious problem with income inequality. According to Bloomberg, the richest 20 percent in China earn 10 times more than the poorest 20 percent.

Over recent days, President Xi has called for high salaries to be regulated at an economic meeting.

Speaking at the Chinese Central Financial and Economic Affairs Commission, Mr Xi reportedly called on ministers to “regulate excessively high incomes and encourage high-income groups and enterprises to return more to society”.