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Opinion | Beijing’s ‘common prosperity’ push shows how its China model is taking shape
- Together with other recent changes, the future of a socialist market economy with Chinese characteristics is emerging
- Tight state control of successful private firms, recycling more wealth back into society and limits on content creation all appear to be here to stay
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The Chinese leadership is talking about common prosperity as a policy driver. This could be a cue for those with great wealth to recycle it back into society, the so-called third round of distribution. Together with other recent changes to how the economy is run, the China model seems to be taking shape.
Chinese leaders call the country’s economic model a socialist market economy with Chinese characteristics. It might sound like a mouthful, but three of those words – Chinese, socialist and market – are taking on proper substance now.
China makes up 17 per cent of the global economy, a figure that could double in two decades. Just by virtue of its weight, the China model has far-reaching consequences for the world. It is fair to say the world is entering the Chinese century, with all its benefits and limitations.
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Chinese prosperity is first and foremost an East Asian phenomenon. Japan, South Korea and now China demonstrate that East Asians are capable of reaching Western levels of productivity. The economic model is of secondary importance.
China’s current per capita income is a quarter to a third of leading Western countries’. The difference is the tailwind. The Chinese government can make many mistakes without derailing the growth trend.
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‘Socialism with Chinese characteristics’ explained
‘Socialism with Chinese characteristics’ explained
China’s economic model does have far-reaching political consequences. Let’s dive into the first part – the fact that it is Chinese. Chinese civilisation is all about uniting people around the political leadership. Starting from the first emperor of China burning books, it has been about making all the people in a vast continent one and the same.
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