However, the impact of social policies on inequality has not been fully evaluated yet, as many of them have been implemented only in recent years (Ravallion and Chen, 2007, World Bank, 2009). Section 3.1 reviews income inequality trends in China. Section 3.2 analyses the main trends in income inequality and poverty in China and examines their links with labour market changes. Section 3.3 explores the role of labour market institutions, regulations and policies that have changed considerably in recent years and points out their implications for income inequality.