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‘Common prosperity’ – China’s plans for redistribution

By
Nico Beckert

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).