How do the Chinese population interpret a socially segregated China that already has a half-century history? Moreover, to what extent do Chinese of different status perceive such a social reality in a similar or a dissimilar way? On top of the social and economic categories that are in existence, are there also corresponding mental categories that both reflect and cement the social divide? These are the main questions I attempt to address in this paper. I will first establish that there are indeed three distinctive social groups today who compose the Chinese population and discuss that the differences separating these categories are institutional not geographical or simply occupational. Utilizing national survey data on perceptions of distributive justice, I will then explore what differences, if any, exist among the three groups in their perceptions of the current social system and economic inequality in China. I will also show how different social groups perceive their social status in the Chinese society today. Lastly, I will examine how perception of inequality is socially bounded by identifying the unique role of social categories in perceptions of inequality, a role that is independent of the characteristics of individuals who form these three social groups.

This paper focuses on a small portion of the overall picture of rising inequality in China; the emerging trend and underlying patterns of poverty in Chinese cities. We ask and then attempt to answer the question of "who are more likely to fall under the poverty line." By examining the prevalence of poverty and especially the characteristics of those who fall within this group, we intend to gain some insights about the capabilities of those falling into the poor category, and about the durability of inequality. Falling under the lowest end of income distribution itself is significant, but the characteristics of those who fall into the poor category provide useful hints about the production and the reproduction of poverty.