The widening income gap in China and the resulting social explosions, threatening the interests of the ruling bureaucracy and capitalists, is a top item on the agenda of the leadership of the Chinese Communist Party. In a bid to ease the revolt, the 11th five-year economic plan is nominally focusing on more equal distribution, but this cannot solve the contradictions created by the move towards capitalism.

The death of Deng Xiaoping opens up a new chapter for China. Over the last 20 years since the death of Mao, the shift towards opening up the economy to capitalist interests has intensified the contradictions of Chinese society.

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