Abstract:Gini-Coefficient in China has achieved 0.61, which represents that China has become one of the few countries with the widest gap between the rich and the poor. A World Bank report concludes that concentration of wealth in China has surpassed that in the US, and polarization of income in China has become the severest one in the world. The paper points out that the inadequate market-oriented reform is the essential cause for the high Gini-Coefficient in China.