China's Digital Economy Widens Urban-Rural Income Gap - Study Finds Technology Boom Is Not Sharing the Wealth Equally

Highlights

• Analysis of 281 Chinese cities (2009–2022) found greater digital-economy development correlated with a wider urban–rural income gap.
• Urban disposable income per person remained 2.34 times rural income in 2024, even as China's digital economy expanded rapidly.
• China's Broadband China pilot program was associated with a relatively larger increase in the urban–rural gap in designated cities.
• Researchers note fiscal support, hukou reform, and better labor allocation could moderate the inequality effect.
• China's export overcapacity in sectors like rare earths and EVs may partly stem from a domestic distribution problem limiting household purchasing power.