The Hukou System: Implemented in the late 1950s, this system tied social benefits to birthplace, creating a stark urban-rural divide.
Reform Era (post-1978): While cities boomed under Deng Xiaoping's reforms, rural areas lagged behind, leading to mass migration to urban centers.
Recent Developments: The abolition of agricultural taxes in 2006 and Xi Jinping's "rural revitalization" strategy have aimed to bridge the urban-rural gap.
Despite these efforts, a significant income disparity persists, with rural households earning only about 40% of their urban counterparts.