Drawing on past research, including my own, I set forth the following propositions: (1) inequality in China has been generated and maintained by structural collective mechanisms, such as regions and work units; (2) traditional Chinese political ideology has promoted merit-based inequality, with merit being perceived as functional in improving the collective welfare for ordinary people; and (3) many Chinese people today regard inequality as an inevitable consequence of economic development. Thus, it seems unlikely that social inequality alone would lead to political and social unrest in today’s China.