China’s income distribution has been more and more unequal since the time of reform and open up in 1970s. The Gini Index is more than the cordon level that is 0.4，which is unfavorable to China’s economic and social development. The paper firstly introduces the public policy on income distribution published form Sixteenth Congress of the Communist Party of China. And then，the paper analyzes the issues with China income distribution，such as the income inequality，the disorder with income distribution，the lack of mechanism to deal with those issues and so on. After the analysis on those issues，the last part of the paper supplies the solutions for those issues in China’s income distribution：The government should reform the income distribution institutions and put the income distribution in order.