Regulatory measures targeting China's education, health care, and Internet sectors have been rolled out in rapid succession, which are thought to be part of China’s drive towards common prosperity. 1/6
In a recent report, CF40 Youth Economist Forum member XIONG Yuan and Guosheng Securities Analyst YANG Tao analyze the meanings, realizations and goals of common prosperity, along with its implications for the economy and industries. 2/6
The focus of common prosperity is on fairness and distribution, aiming to address “three major gaps”, i.e., income gap, regional gap and urban-rural gap, which have been widened since the outbreak of #COVID19. 3/6
To close the “three major gaps” requires improvement of “primary #distribution, redistribution, and third distribution,” especially the reform on factors like labor and capital, as well as regulation of high-income. 4/6
China’s goals for narrowing the wealth gap are too conservative, according to XIONG Yuan and YANG Tao, while goals for public service are proactive, mostly higher than the actual data in 2020. 5/6
On the implications, the authors believe that common prosperity could boost consumer spending and investment in livelihood-related sectors, while some of the other sectors could be under the blow. Full text at: mp.weixin.qq.com/s/ZUaW-sNYkTje… 6/6
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