A lot of people you meet in China today will tell you that despite China's improving economic condition, they simply are not happy. You can see it in the faces of potential home buyers in Beijing as housing prices skyrocketed last year. You can see it in Shanghai, where survivors of last November's massive Jing'an District fire will tell you what it was like to be trapped in the upper part of the building for hours and see more than 50 of their neighbors burned to death. You can feel it in hearing the story of Chen Xiaofeng, the victim of a Baoding hit-and-run accident whose assailant, the son of the local police chief, tried to speed away and remained undeterred when the security guards intercepted him. These people are not happy, they will tell you, because they feel they have no dignity in society.

Today only a small group of elites, bureaucrats and entrepreneurs have benefited massively from the economic growth, widening the gap with the rest of the population. More than 300,000 Chinese have a net wealth worth over US$1 million, excluding property, according to a report from Merrill Lynch. These millionaires control some US$530 billion in assets, the Boston Consulting Group estimates. The social inequality and the income gap threaten to undermine stability in society.

Social inequality has become such a serious problem that last year, Premier Wen Jiabao publicly announced that the fundamental purpose of China's economic development is to satisfy the people's increasing material and cultural demands, while social justice forms the foundation of national stability.

"Social justice shines much brighter than the sun," Wen said, pledging more attention to the poor and disadvantaged groups "because they account for the majority of society".

This recent humanistic policy shows that the social inequality behind China's rapid economic growth has already sounded alarms inside the government leadership, which has to react quickly and correctly in order to ensure stability.

China's story of modernization has transformed millions of lives in countless different ways. Thirty years ago, to have basic supplies was all that mattered to the Chinese, and they felt happy if those modest means could be achieved. Now the Chinese are having different dreams, such as those of a society of equal opportunity and social justice. These new aspirations have left the Chinese government rushing to adapt to face these new challenges before many lose hope that their dreams will never be realized.

The author is a China researcher for foreign media in Beijing.

Opinion articles reflect the views of their authors, not necessarily those of China.org.cn.