China’s widening income gap is approaching Latin American levels, according to a report by the Chinese Academy of Social Sciences, a state think-tank.

The development flies in the face of two years of efforts by China’s leaders to make addressing the gap between rich and poor a priority. Hu Jintao, China’s president, has pledged to promote “social equality”. Although the government has abolished an agricultural tax and pledged to expand the social security network in both rural and urban areas, it is under considerable pressure to announce more ambitious policies.