Era of common prosperity shows China is moving forward, despite what the US thinks
- China has made enormous progress in the past four decades, but leaders know the job is far from done
- Long-term goals executed across multiple generations have led China into an era of moderate prosperity, something the US system cannot match
In 1967, US president Richard Nixon penned an article in Foreign Affairs magazine, urging a strategy of engagement with China and stating that “our goal should be to induce change”.
There appears to be broad political consensus in the United States that China has not changed enough and, worse still, is moving backwards with its recent slate of policies and initiatives.
China is one of the world’s oldest civilisations, and the Chinese governance system predates the US Constitution by thousands of years. Contrary to Pompeo’s observation, China’s fate is inseparable from changes, successful or otherwise, throughout its history.
To be sure, common prosperity seems at odds with laissez-faire economics and the doctrines of eminent economists stretching back to Adam Smith.
China has made enormous progress in the past four decades, but the country’s leadership also knows the job is far from done.
The stark contrast between the horrifying Xuzhou case and celebration of Gu is emblematic of the multitude of serious imbalances that are threatening Chinese society as well as the environment. As Xi put it, common prosperity must “ensure that ecological protection and people’s happiness are enhanced in harmony”.
The deliverable for any government is the well-being of the people. The US and China differ on the meaning of people’s well-being, which reflects the importance of individualism and collectivism in their respective societies.
Understanding Chinese governance is vital but lacking in the US. This is unsurprising since the Chinese governance system is unique. It evolved over the course of thousands of years and is profoundly influenced by the Chinese notion of harmony.
Unlike the short US election cycles and their winners and losers, Chinese leaders set long-term goals that are executed across multi-generational leadership. This requires stability to ensure the continuity of reforms.
There were some setbacks, including the Great Leap Forward and the Cultural Revolution, but that did not stop the reforms and Deng ushered in the era of “reform and opening up”.
Reforms must translate to tangible benefits for the people. Contrary to Pompeo’s portrayal of China as an Orwellian state, a Harvard Kennedy School Ash Centre survey showed 93 per cent of the respondents in China were satisfied with the central government in 2016.
There are no perfect governance systems. Every nation has many issues that are unique to its history, philosophy and culture.
Common prosperity is now in play. Barring unforeseen difficulties, it is hard to see China turning the clock back to the era of the Great Leap Forward and the Cultural Revolution.
Lub Bun Chong is a partner of C Consultancy and Helios Strategic Advisors, and the author of “Managing a Chinese Partner: Insights From Four Global Companies”