Xi Jinping Presents 'Common Prosperity' Timeline: "Equalizing Public Services by 2035"

Emphasizing 'Reducing Inequality'... "We Must Prevent Social Stratification"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Suhwan] As China declares its national policy centered on 'common prosperity,' a timetable from President Xi Jinping outlining phased implementation goals, including equalizing basic public services by 2035, has been revealed.

China aims to basically realize common prosperity by the middle of this century. The plan is to first establish a 'common prosperity' pilot zone in Zhejiang Province in the east, then gradually implement the policy according to local conditions across the country.

The theoretical journal of the Chinese Communist Party, Qiushi, on August 16 published part of President Xi Jinping's speech delivered at the 10th Central Financial and Economic Affairs Commission meeting held in Beijing on August 17, attended by the core leadership of the Chinese Communist Party.

The speech presented President Xi's specific plans regarding real estate, income inequality, education, and anti-monopoly reforms.

Regarding high-income earners, President Xi stated, "We must eliminate polarization and unfair distribution," and added, "We will reasonably adjust excessive high incomes and improve the personal income tax system."

He also mentioned regulating capital income management and promoting real estate tax reform, saying, "We must firmly oppose the disorderly expansion of capital and strengthen anti-monopoly management." He announced a strict punishment policy for economic crimes such as tax evasion and stock price manipulation.

Furthermore, he spoke about promoting spiritual common prosperity through expanding the middle class and patriotic education, as well as developing rural areas.

In particular, President Xi presented phased goals for realizing common prosperity, stating that by the end of the 14th Five-Year Plan period (2021?2025), China will take firm steps toward common prosperity for all people and gradually reduce income and actual consumption level disparities among residents.

By 2035, more distinct and substantial progress will be made to achieve equalization of basic public services.

By the middle of the 21st century, China aims to basically realize common prosperity for all people while reducing income and actual consumption level differences among residents to a reasonable range.

The year 2035 is predicted to be when China's Gross Domestic Product (GDP) doubles compared to 2019, and China has set a goal to basically achieve 'socialist modernization' by then.

The year 2049, marking the 100th anniversary of the founding of the People's Republic of China, is the target date for China to effectively become the world's strongest power and achieve the 'great rejuvenation of the Chinese nation.'

Regarding the promotion of 'equalization of basic public services,' President Xi said, "We must effectively reduce the educational burden on impoverished families and improve the educational level of children from low-income groups," and also pledged to reduce disparities in elderly care and medical security levels between urban and rural areas.

He clearly expressed his intention to improve housing supply and long-term rental policies, stating, "A house is a place to live, not an object of speculation."

However, President Xi noted, "Like the comprehensive construction of a moderately prosperous society (Xiaokang), common prosperity for all people is an overall concept," adding, "It does not mean everyone becomes wealthy simultaneously or that all regions reach the same level of wealth at the same time."

He also said, "The government cannot take responsibility for everything," warning, "Even if development levels rise in the future, we must not excessively raise goals or guarantees. We must never fall into the 'welfare trap' that feeds the lazy."

President Xi explained the necessity of common prosperity as a measure to prevent social division caused by wealth disparities.

He emphasized, "Income inequality has become a global issue. In some countries, social division, political extremism, and the spread of populism have occurred due to wealth gaps and the collapse of the middle class," and stressed, "We must prevent polarization and promote common prosperity to achieve social harmony and stability."

He also pointed out that income disparity remains an issue within China, stating, "We must prevent social stratification from becoming fixed," and warned against the 'Tangping (lying flat) ideology,' which symbolizes the sense of deprivation and loss of motivation among young Chinese people.