China to further reform income distribution system   2002-11-08 10:02:03 China should establish the principle that labor, capital, technology, managerial expertise and other production factors participate in the distribution of income in accordance with their contributions, thereby improving the system under which distribution according to work is dominant and a variety of modes of distribution coexist, Jiang Zemin said here Friday. "Rationalizing the relations of distribution bears on the immediate interests of the general public and the display of their initiative," Jiang said in his report to the 16th National Congress of the Communist Party of China （CPC）, which opened in Beijing on Friday morning. "We should give priority to efficiency with due consideration to fairness, earnestly implementing the distribution policy while advocating the spirit of devotion, and guarding against an excessive disparity in income while opposing equalitarianism," Jiang said. "Bearing in mind the objective of common prosperity, we should try to raise the proportion of the middle－income group and increase the income of the low－income group," he added. Jiang said that China should improve the basic old－age pension and medical insurance systems for urban workers and the systems of unemployment insurance and subsistence allowances for urban residents.