China: Xi against ‘excessive’ incomes, rich give more

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– BEIJING, 18 AUG – China will focus on moderate wealth for all, rather than on the few, encouraging the richest to give more back to society, in line with the policies that analysts say would be at the base of the latest strict regulation on technology companies. President Xi Jinping, chairing the 10th meeting of the Central Commission for Financial and Economic Affairs yesterday, reaffirmed the need to promote “common prosperity” and the importance of efforts in pursuing high-quality development and coordination of work at the in order to avoid the main financial risks.

In his first public event since late July, Xi, after the period of silence in which Chinese leaders usually have confidential discussions at a resort in Beidaihe, about a three-hour drive from Beijing, said that common prosperity is “a essential requirement of socialism and a key feature of Chinese-style modernization. “

In the official media report, the president, calling for adherence to people-centered development, urged the achievement of “common prosperity while pursuing high-quality development”.

Noting that finance is at the heart of the modern economy, Xi stressed that “efforts to fend off major financial risks should be coordinated in line with market principles and the rule of law.”

The meeting focused on “the reasonable adjustment of excessive incomes and on encouraging high-income groups and companies to give more back to society”. Income inequality among the 1.411 billion Chinese has increased in recent decades: the richest 10% of the population earned 41% of national income in 2015, up from 27% in 1978, according to estimates published in 2019 by the Nobel Prize for economics Thomas Piketty. Half of the low-income population, on the other hand, has seen its share drop to around 15%, from around 27% in 1978. .