With the development of China's economy, the income gap is getting bigger and bigger, and people pay more and more attention to it. This paper mainly introduces the present situation of regional income gap in China, and then analyzes the reasons for this situation, so that people can understand and treat the income gap more correctly. Key words: regional disparity, gap between the rich and the poor, economic policy, and the deepening of China's reform and opening up have greatly increased people's income. The second step of the "three steps"-people's life reached a well-off level at the end of the 20th century, which was also successfully realized at the end of the 20th century. We are now moving towards the third step. However, when we strive to reach the level of moderately developed countries in the middle of the next century, the gap between the rich and the poor in China is also widening. In China, the reasons for the widening gap between the rich and the poor are very complicated, including natural selection factors in the development of market economy, specific structural and institutional factors in the transition period, and abnormal factors such as corruption and market disorder. To correctly understand the income gap in China, we must have a good understanding of the types and causes of the income gap in China. At present, the income gap in China can be roughly divided into urban-rural gap, regional gap, industry gap and income inequality gap. The following mainly introduces the regional income gap in China, and analyzes the causes of this gap. First, the status quo of regional disparity The regional disparity of urban residents' income has further widened. The income level and growth rate of urban residents in the eastern region are significantly higher than those in the central and western regions, and the income gap is widening year by year. From 198 1 to 1999, the per capita income of urban residents in the eastern region increased by 15.0 1 times, in the central region by 12.2 times, in the western region by 9.5 times, and in the central region by/kloc-. The income ratio of the eastern, central and western regions changed from1981.20:1.80 to1.48:1. Changes in the regional disparity of urban residents' per capita income [1] In view of the widening gap between regions, some people generalize it as "one China, four worlds", that is, put China 3/kloc-0 provinces, municipalities and autonomous regions (except Taiwan Province Province) into the world to understand, and calculate the dollar value according to the actual purchasing power parity, which can be divided into four worlds: the first world is Shanghai and Beijing. From 65438 to 0999, the per capita GDP of Shanghai and Beijing were 155 16 and 9996 respectively, which were significantly higher than the average level of middle-income countries (US$ 8,320), and the population of Shanghai and Beijing accounted for 2.2% of the total population in China. The second world is large and medium-sized cities and upper-middle income areas in coastal areas. The per capita GDP of Tianjin, Guangdong, Zhejiang, Jiangsu, Fujian, Liaoning and other coastal provinces is higher than the average level of middle-income countries in the world (US$ 3,960), and the population of six provinces and cities accounts for 2 1.8% of the national population. The third world is a middle-lower income area, including Hebei, Northeast China and some coastal areas in central North China. Per capita GDP is lower than the average level of lower-middle income countries, and the population accounts for 26% of the total population. The fourth world includes poverty-stricken areas in the central and western regions, ethnic minority areas, rural areas, remote areas and low-income areas. It is lower than the average level of low-income countries in the world (US$ 65,438 +0.790), and its population is about 630 million, accounting for 50% of the total population of China. Second, the reasons for the regional disparity 1. Historical factors In China, different regions faced different initial conditions in the early stage of reform, and the differences in initial conditions also constituted different gains in the reform process. First of all, there are obvious differences between the east and the west in the concept of commodity economy accumulated in these initial articles for a long time. Historically, residents in the eastern region, especially in Jiangsu and Zhejiang provinces, have a strong concept of commodity economy and a deep understanding and participation in the market. On the contrary, residents in the central and western regions are relatively conservative, accustomed to sticking to local concepts and lacking adventure and entrepreneurial spirit. Correspondingly, the population mobility in the central and western regions is relatively poor. Therefore, when China started the market-oriented reform, the residents in the southeast coastal areas first shared the "dividend" of the reform because of their active participation, while the residents in the central and western regions lost their first-Mover advantage because of their slow action, thus widening the income gap between the eastern and central and western regions. Secondly, there are differences in the industrial base between the east and the west. In 1960s and 1970s, China government tilted towards the central and western regions in terms of industrial layout and resource allocation, and established a series of military industrial bases in the central and western regions. These industrial bases have enhanced the production capacity and industrial base of the central and western regions, but they have not substantially made up for the gap in industrialization level between the eastern and central and western regions. Plus the military enterprises established in the sixties and seventies after the reform and opening up. Due to the system and other reasons, there are operational difficulties, which have not improved the industrial production level in the central and western regions, but have become a heavy burden for these regions. 2. Policy factors: The arrangement of the China government in the opening order makes the benefits that different regions can get in the reform quite different. Since the reform and opening up, the economic policy of China government has been tilted to the eastern coastal areas. Five special economic zones and 14 coastal open cities are all in the east, and these places are very caring for foreign businessmen and local enterprises in financial policies, which makes the eastern coastal areas attract a lot of foreign investment in the early stage of reform and opening up, and the local economy has developed greatly. Although foreign capital is not the only factor of economic development, it is the main driving force to promote economic development in the early stage of economic development, especially for transitional economies like China. 1983- 1996, 88.3% of China's foreign investment is distributed in the eastern coastal areas, only 8.3% in the central region and 3.4% in the western region. In line with the distribution of foreign direct investment, the inland provinces are far behind the coastal areas in the speed of economic development, and the further result is the widening income gap among residents in various regions. 3. Trade factors Trade dependence and export dependence are two important indicators reflecting the scale of trade. From 1993-2003, the dependence on trade in the eastern region rose from 0.64 to 0.77, the dependence on exports rose from 0.29 to 0.40, the dependence on trade in the central region rose from 0. 18 to 0. 1 0, and the dependence on exports rose from 0. 10 to 0. [4] It can be seen that China's foreign trade is mostly concentrated in the southeast coastal areas and less in the central and western regions. According to 1999, the total import and export volume of southeast coastal areas 12 provinces and cities accounts for 90.60% of the whole country, while other regions only account for less than 10%. Therefore, residents in the southeast coastal areas enjoy more foreign trade benefits than those in the central and western regions. At the same time, due to the poor mobility of labor factors and the difficulty of changing careers between regions, the mobility of labor in the eastern region is stronger than that in the western region. This objectively caused the difference in the income of workers between regions. 4. Educational factors With the development of education, the gap between educated people and uneducated people will be widened, because educated people have higher production capacity and higher allocation ability, and they can occupy higher-paying occupations and posts, thus obtaining higher income. The educational level gap between different regions in China is quite obvious. The eastern coastal areas have better educational facilities, higher education level and higher education level of residents. However, due to the backward economic development and insufficient investment in education in the central and western regions, the per capita education level of residents is far lower than that in the eastern region. This gap in education level, especially in basic education, constitutes an important reason for the widening income gap between the east and the west. 5. Natural conditions and geographical location The differences in natural conditions and geographical location between the eastern, central and western regions are also unfavorable to the central and western regions. Geographically, there are many ports and docks in the southeast coastal areas, and the road and railway networks are dense, which has incomparable geographical advantages compared with economically developed Hong Kong, Macau, Taiwan Province Province, Japan and South Korea. At the same time, the eastern region has good climatic conditions and rich products, which are suitable for production and life, making the eastern region gain a comparative advantage in economic development, thus taking the lead. Three. Conclusion The above is an analysis of the current situation and causes of regional income gap in China. Through the analysis, we can see that the income gap at this stage is inevitable in the process of China's economic development, but some gaps can be avoided. We should treat the duality of the gap between the rich and the poor rationally, objectively analyze the factors that cause the gap between the rich and the poor to widen, and distinguish between normal factors and abnormal factors. When the two sessions were held in China in 2005, the delegates put forward many good suggestions and opinions on the income gap, and the China government also attached great importance to this issue. With the development of China's economy, the improvement of the system and the establishment of various systems, China's implementation of the strategy of "developing the western region" and reducing the burden on farmers will certainly eliminate all kinds of unfair income, narrow the gap between urban and rural areas, regional gaps and industry gaps, and achieve prosperity in our society. In the world/

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