There is much that China can do to create more equality, and to let its people enjoy the fruits of the country's growth and technological development, said Takehiko Nakao, president of the Asian Development Bank.
China is already an innovative country and has made much progress in commerce, finance and industry, but it now faces a new kind of challenge, he said.
"To me, my challenge is how to make society more equal? How to make the older population enjoy better life from the fruits of this technological development, growth and also globalization?" he said.
Speaking to CNBC at the China Development Forum, Nakao suggested that China could insititute a progressive tax regime, with taxes to be imposed on capital gains and property.
"I think China can do many things to make society more equal. And I know that the government leaders know it," said Nakao, who was formerly Japan's vice finance minister for international affairs.
The ADB's work as an Asia Pacific regional development bank focuses on providing loans, grants, and equity investments to reduce poverty. Nakao has led the organization since 2013.