Will ‘common prosperity’ address China’s inequality?
Why is China reviving this old mantra?
This episode is part of the ZhōngHuá Mundus series of The Sound of Economics.
ZhōngHuá Mundus is a newsletter by Bruegel, bringing you monthly analysis of China in the world, as seen from Europe.
Check the previous editions of ZhōngHuá Mundus
The concept of “common prosperity” has deep roots in the Chinese Communist Party. It was already used in the 1950s and the late 1970s under different leaderships. On August 17 2021, President Xi Jinping highlighted this concept again, calling for China to achieve “common prosperity”, seeking to narrow a yawning wealth gap that threatens the country’s economic ascent and the legitimacy of Communist Party rule. Since then, there have been simultaneous crackdowns on business sectors and individuals, many of which fall under the umbrella of ‘common prosperity’.
Why is this term being brought up again? Why now? What policies have followed? What does the regime want to achieve? Giuseppe Porcaro is joined by Bruegel Senior fellow Alicia García-Herrero and Minxin Pei, Professor of Government at Claremont McKenna College and a non-resident senior fellow at the German Marshall Fund of the United States to discuss.