China presents a “giving puzzle”. Despite experiencing remarkable economic growth in the 21st century, the nation consistently ranks among the world’s least generous in terms of domestic charitable giving. As economic inequality rises in the 2020s, threatening the political legitimacy of the Chinese Communist Party, the Xi Jinping administration encourages charitable giving to mitigate social problems and reduce resentment against economic inequality. This study analyzes data from the Chinese General Social Survey to unravel this giving puzzle and suggests that political rhetoric alone is insufficient for individual-level behavioral changes. The findings reveal that individuals with low perceived socio-economic status and those without a social safety net exhibit low charitable giving. Additionally, there is a discord between actual socio-economic improvements and citizens’ perceptions, alongside a decline in social trust. Neither generalized trust nor trust in NGOs significantly influences charitable giving, but the political dimension of donating plays a role in behaviour.