This book aims to explain and explore the distribution mechanism adopted by China, which prioritizes distribution according to performance while taking factors of production into consideration. This mechanism is designed in the context of current market-oriented economy, but it also leads to problems such as the widening income gap among the citizens. Besides serving for economic growth, the authors proposed balancing the interests through policies among different groups as one of the key role for distribution system, which may slow down or even stop the trend of widening income gap. And the authors also provided possible measures for this purpose.