This thesis examines the relationship between rising inequality and social unrest in China. This relationship is approached from two theoretical angles: rational-materialist (distributive conflict theory), and socio-cognitive (relative- deprivation). The results show that objective inequality is highly institutionalized in China, and is indeed an important cause of social unrest in China. However, the strength of this connection is mediated by cognitive processes, particularly that of relative social comparison. The structure of inequality in China has limited social comparison between the advantaged and the disadvantaged, thereby minimizing inequality-induced social unrest.