China’s common prosperity push may force Japanese businesses to ‘reconsider investment strategy’
- Common prosperity is central to promoting well-being as China strives to achieve its second centenary goal of fully building a modern socialist country
- But Japanese businesspeople working in China say they have been disappointed with Beijing’s current policy direction, which might stifle spending and investment
Chinese President Xi Jinping’s push to achieve so-called common prosperity, aimed at reducing income gaps at home, has sparked concern among Japanese companies that the most populous country would become a less attractive market in the future.
Since Xi earlier this year declared the ruling Communist Party had reached its long-held goal of building a “moderately prosperous society,” his leadership has apparently started to levy severe restrictions on the rich in a bid to rectify economic inequality.
In Shanghai, the annual China International Import Expo is slated to be held for six days starting next week, as Xi has been trying to show the world its commitment to free trade with economic and technology tensions with the United States escalating.
But Japanese businesspeople working in China say they have been disappointed with Beijing’s current policy direction, which might stifle spending and investment by the Chinese wealthy and in turn could hamper the nation’s economic expansion across the board.
Should the Communist-led government focus too much on income distribution by siphoning money from the rich, the number of those who want to buy our products would definitely decrease in China