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Since the beginning of its “reform and opening-up” policy program, China has experienced economic transformation on a scale never seen before in the history of modern societies. The speed, the scope, and the relative stability of the “Chinese economic miracle” still represents a puzzle for social scientists, especially those who specialize in the relationship between capital and ideology. Recently, Thomas Piketty allocated a chapter of his publication to income inequality in China. His estimations indicate that income inequality has plateaued since the mid-2000s at a level below that of the United States. Piketty concludes that China has a relatively low tolerance of income inequality. This article analyzes Piketty’s data and methods, then proceeds to suggest an alternative evaluation of household income inequality using the Gini index. Using surveys conducted as part of the China Family Panel Studies, the article shows that income inequality increased until the end of the 2000s, after which it has remained at a level above that of United States. Such estimates corroborate the findings of numerous income inequality specialists in China, who suggest that the majority of Chinese people perceive income inequality as a prerequisite to economic development. JEL classification codes: P2, P16, E25, A14