The rapid economic growth in China captures the world’s attention especially after the economic reform and openness policy in 1978 as the Trade, exports and imports have enormously gone up (Refer to Figure 2). Perhaps like other developing countries, China has been experiencing an increase in economic inequality accompany with the global economic integration. As shown in figure 3, the Gini coefficient from 1978-2008 presents that the inequality within the country has been highly praised. Growing on the intra-country inequality not only affect the stability of the country but also hamper the potential economic growth. Moreover, the inequality problem is quite complicated in China as the wage inequality, uneven income distribution on and regional disparity are all needed to take into account when we concern about the economic inequality of a country. The following chapter will briefly review the current literature to see what scholars have discovered on this topic and how they argue about the story. In chapter 3, the empirical model will be constructed and displays the details of the data resource, data description and OLS assumptions. Chapter 4 will access the tests for the model to check its validity, and then find out the relationship between the four independent variables and the dependent variable. Critical analysis of the globalization impact on the inequality in China will also be applied in Chapter 4. The conclusion will be drawn in Chapter 5 to summarize what evidence has been found from the results of this paper.