A report to the 19th CPC National Congress said that growth in people’s incomes should keep up with the economy and labor productivity.

China’s per capita disposable income witnessed a 7.4-percent increase from 2012 to 2016, demonstrating a synchronized growth in economy and people’s income as well as a gradual shrinking of the income distribution gap.

According to the report, a more rational and orderly income distribution mechanism should be adopted by sticking to the principle of distribution according to performance, while making improvements in the system of distribution according to productive factors.

Xue Lan, a professor at the Institute of Public Administration of Tsinghua University, said that scientific technology, capital, and other elements should play a bigger role in income distribution. “In doing so, our people will be more motivated to engage in innovations and start-ups.”

It’s also noteworthy that the ever-expanding middle-class community will help boost domestic demands with their growing contributions to consumption, according to some analysts. Meanwhile, the high demands from this group for high-end goods, in turn, offer an incentive for supply-side structural reform.

In addition, adopting a two-pronged approach to economic development, namely, boosting employment and implementing income distribution reform simultaneously, can create a fairer and more rewarding environment for the masses, said Wang Bo, a delegate from Wuhan province to the 19th CPC National Congress.