The reform of income distribution system has been accelerating in China since 2013. The central government has issued the Several Opinions on Deepening the Reform of Income Distribution System，and accordingly assigned the reform task to the relevant ministers and set up the joint inter-ministerial meeting. The reform of top managerial compensation in centrally-administered SOEs and the reform of pension system have been launched firstly. Following the arrangement，the provincial governments put the reform plan into practice actively. The income distribution in China has been improving in recent years. However，there are still many challenges to overcome since the economy has accumulated many long-standing and deep-seated problems. The decisive role of market in resource allocation and a better-functioning government are necessary for the next stage success of the reform. Improving the primary income distribution，the redistribution and enlarging the medium income group are the key to the reform. <<