Xi Jinping has pledged to double the size of China’s economy by 2035, but can he rein in inequality?

China’s rapid growth over the past four decades has lifted living standards, but coincided with a widening wealth gap

President Xi Jinping says China must address the issue more seriously, indicating renewed focus over the next 15 years

4-MIN READ4-MIN

Xi Jinping says China must tackle the country’s widening wealth gap. Photo: Xinhua

Published: 6:00pm, 23 Nov 2020Updated: 10:44pm, 23 Nov 2020

China will need to reform tax, welfare and labour policies if it is to reign in inequality and create “common prosperity” for all by 2035, economists say.

Following the Central Committee’s fifth plenum in late October, President Xi Jinping said doubling the size of China’s economy by 2035 was within reach, but the country must distribute the fruits of development more fairly.

In outlining his 15-year vision for China, Xi said the country “must achieve substantial progress towards common prosperity in a more noticeable way”, indicating renewed focus on addressing the country’s wealth gap in coming years.

Former leader Deng Xiaoping said the goal of Chinese socialism was to achieve common prosperity for all, although it remains a distant vision.

It’s very difficult to achieve the ultimate goal of common prosperity, but at least China is determined to make more visible progress,

Li Xunlei

China’s rapid growth in the past four decades has lifted living standards across the country – pulling tens of millions of people out of poverty – but it has also coincided with a sharp widening of inequality.