The Chinese Path to Common Prosperity

In China the idea of common prosperity dates back to 1953. After 1979 China chose to let some people and places get rich first to accelerate economic development, with Deng Xiaoping arguing that public property could prevent social polarization. The result was extraordinary sustained economic growth but at the expense of large increases in urban-rural, regional and social inequalities in income and wealth themselves associated with the growth of private capital. In 1999 China started to address urban-rural and regional disparities in the name of common prosperity, while under the leadership of Xi Jinping the emphasis on common prosperity has increased markedly alongside domestic goals relating to innovation, improved governance and ecological and spiritual civilization. Starting in 2020, this course has seen strong government action against the disorderly expansion of private capital, monopolies, speculation and the costs of privately provided education, housing and potentially health, as well as the establishment of a demonstration zone in Zhejiang province to explore ways to address uneven development and reshape the primary, secondary and tertiary distributions of income.

Automated summary

The concept of common prosperity in China can be traced back to 1953. In 1979, China chose to prioritize the enrichment of certain individuals and regions to accelerate economic development. However, this led to significant income and wealth inequalities in urban-rural, regional, and social areas. Since 1999, China has been addressing these disparities in the name of common prosperity, with a stronger emphasis under the leadership of Xi Jinping on innovation, improved governance, and ecological and spiritual civilization. Starting in 2020, the government has taken strong actions against the disorderly expansion of private capital and monopolies, aiming to reshape income distribution and address uneven development.