As I see it | China’s ‘common prosperity’ should be about helping those who need it most
- President Xi Jinping has defined the goal for the first time, but it remains unclear how it will translate into action
- Practical policies are needed for equal access to health care and education, and more must be done to improve social welfare
The goal has been loosely discussed before, but Xi’s speech marked an official shift from former leader Deng Xiaoping’s policy of “letting some people get rich first” to a more even distribution of wealth.
Analysts and state media say the policy does not contradict those that encourage wealth creation, and that after decades of accumulating a large “cake” – meaning the economy – the country can afford to “cut the cake in a fair way”.
But it remains unclear how it will translate into action, and there has been speculation that big tech companies – already under pressure from Beijing – might have to donate a significant portion of their wealth, concerns that have sent their share prices lower.
State media outlets have also spent some time saying what common prosperity is not – that China will not be going back to the “iron rice bowl” system providing cradle-to-grave welfare support that was introduced in the Mao Zedong era.