The article examines income trends in China from 2007 to 2013, focusing on household incomes and inequality. The researchers found that overall inequality decreased during this period, driven by reductions in income gaps between urban and rural areas, as well as among different regions. However, rising inequality within urban and rural sectors, along with the importance of unequally distributed income sources like assets and housing, offset some of this decline. Adjustments for cost of living differences and underrepresentation of top-income groups suggest that the apparent reduction in inequality may be influenced by changes in prices and the growing income of top earners not captured in surveys.