- New socialism or social market economy?
- Impressions from the Expo pavilion in Dubai
- Speculation about head of VW China
- Travel to Beijing will become even more difficult
- New battery record set by GAC Aion
- Biden and Xi agree on disarmament talks
- EU needs more time on Taiwan plan
- Tools: Export Control Law
Now that Xi Jinping has put his stamp on the Communist Party with his “historic resolution”, he has the necessary leeway to act. And Xi plans to use it to shape both society and the economy according to his ideas. “common prosperity” is what the head of state calls his principle, which focuses less on redistribution and more on opportunities for advancement. Nico Beckert has taken a close look at Xi’s works on the subject.
Preparations for Expo2020 are underway in Dubai, which like all major events has been postponed due to the Covid pandemic. Marcel Grzanna flew to the Emirate to take a gander at the Chinese pavilion. His verdict: more splendor than substance. Even with the pavilion at the World Expo, China is primarily reflecting its own image.
Meanwhile, lips are shut tight over at Volkswagen about the reasons for the replacement of its China boss Stephan Woellenstein. Sure, EV sales in China are not going as planned. But VW is still the market leader. And who’s responsible for the mess, anyway? Christian Domke Seidel investigated the circumstances surrounding the still unconfirmed personnel change.
I hope you enjoy today’s issue!
‘Common prosperity’ – China’s plans for redistribution
China’s leadership has declared “common prosperity” to be a central political goal for the coming decades. The growing inequality in China worries political leaders: This inequality can not be allowed to become an “unbridgeable gulf,” says President Xi Jinping. He warns that China must prevent the polarization of society, promote common prosperity and achieve social stability.
The concept of common prosperity is not new. Mao Zedong and Deng Xiaoping already used it. But Xi managed to revive the old goal and use it to define his political legacy. The impacts of this concept “for Chinese politics, society, and economy are likely to be far-reaching and long-lasting,” write analysts at consultancy Trivium China.
Rising inequality in China
China’s economic growth over the past 40 years has provided a better life for millions of people. But at the same time, a once homogeneous society has become increasingly split into rich and poor. China now has more billionaires than the US, the motherland of capitalism. And while some celebrate their wealth with expensive cars, Gucci bags, and luxury watches, the promise of rising up has become a distant dream for the vast majority. A host of “gig workers” toil at low wages, for example as delivery men. A part of China’s youth is disillusioned and protests by “doing nothing” (China.Table reported).