Since the end of the 1970s, economic reforms in China have revamped the
urban economy, which brought about a considerable increase in urbanization levels
across China. In addition to this spectacular urban development, China has
simultaneously faced dramatic increases in regional inequality, particularly with respect
to urban-rural income disparity. China is indeed becoming a polarized society – a
phenomenon which is at the heart of a multitude of serious problems that are threatening
sustainable development in the country, as well as social cohesion. This threat is of
particular importance to the regions where minorities represent a considerable proportion
of the population, such as in Western China. Using the example of the Xinjiang Uygur
Autonomous Region in Western China, our research clearly demonstrates the dominant
role of the spatial distribution of minorities in explaining urban-rural income disparity, an
issue which has not been well documented in the existing literature on the subject. The
spatial distribution of ethnic minorities reflects not only their spatial segregation, but also
the degree of their socioeconomic exclusion from the majority. As the income gap
between the minority and majority population increases, the inclusion of minorities in the
country’s economic reforms is becoming increasingly critical for the future development
of China.