The article looks at whether or not social policy and other societal-condition variables contribute to the subjective well-being of life satisfaction. It firstly argues that social policy needs to pay more attention to the study of subjective well-being. Then, it reviews the literature and finds that people in rich societies generally have higher levels of life satisfaction. But the findings of a social survey on the level of and variance in life satisfaction in a rich Chinese society reveal the contrary. The empirical data reflects a life satisfaction pattern along strong income and class lines. It also confirms that social policy and other societal-condition variables have different degrees of impact on life satisfaction. At last, implications of the findings for social policy are discussed.