The Ministry of Human Resources and Social Security indicates the gross payroll regulations of State-owned enterprises will be reformed to strengthen the control of the wage levels of high-income industries, says an article in China Business News. Excerpts:

The State Council's economic conference of the fourth quarter also sent a clear message that the overall plan of income distribution reform will be made soon.

It is a social consensus that this reform should increase the income for the low-income group, expand the scale of the middle-income group and control the income of the high-income group.

The executives of the State-owned enterprises of the monopoly industries are always criticized by society for their exorbitant incomes. That's why social security authorities choose this group as the targets of the income control reform.

Certainly, it is far from enough to only control their wages because much of their income comes from bonuses or benefits of various forms. This is a typical characteristic of the monopoly industries. So the other forms of income from wages should also be put under scrutiny and control.

In fact the high income of the executives originates from the monopoly system. So the State-owned enterprise reform is the fundamental way to solve the problem completely. The monopoly system in some industries seriously stifles the development of private enterprises and influences China's economic growth.

Income distribution reform is complicated. But the State-owned enterprises are the right starting point to initiate the reform. Any achievement in this field can help China to progress.