In this analysis, it has been found that the people who face most daunting challenges are the rural communities. The second level of economic reforms the government workers. The private ownership and the people involved in the private sector business see an increase in the income. However, in this process, the real winners are the governmental leaders and the CCP (China Communist Party). They are considered to be the real winners and the principle group that has benefitted from the implementation of the changes.
The government created Special Economic Zones in the state. This was focused on the urban and coastal areas. The people in the middle rural communities and the rust belt areas were not factored in the development. These led to increase in income distribution .The people in the urban areas were found to earn more than the people in the rural communities. As a result of this action by the government, chances of survival were stifled for people in the rural communities and they were pushed into poverty. There faced the brunt of the issues concerned with economic reforms.
These were Agricultural de-collectivization and special economy zone was found to be entrenched in the inequality. The farmers in the economy did not gain proper returns for their investment.