The article examines how changes in income distribution affect economic growth in China. By analyzing surplus labor supply and credit constraints, the researchers found that credit constraints play a significant role in this relationship. When an economy like China's grows with credit constraints, it can shift from a wage-led growth model to a profit-led one. Improving labor share by 1 percent can lead to a 0.59 percent increase in private consumption without harming economic growth. Effective government policies on income distribution could help China transition to a consumption-led growth path.