The indication comes post regulatory crackdown on some of China’s biggest private sector companies
China has recently made statements that indicate its move in future to crackdown on the country’s wealthy.
Party General Secretary and President Xi Jinping said measures will be introduced to curb “excessive incomes” and promote “common prosperity, an essential requirement of socialism,” following the Central Committee for Financial and Economic Affairs meeting.
President Xi Jinping heads this committee. The indication comes post regulatory crackdown on some of China’s biggest private sector companies. An adjustment to the taxation structure is one possibility, analysts said.
The timing of the meeting is significant, as it comes after the annual secretive retreat of top present and past leaders in the seaside town of Beidaihe near Beijing.
Xi said, “common prosperity would be essential to strengthen the foundation for the party’s long-term governance ahead of the second centenary goal.”
He referred to the year 2049, when the People’s Republic of China will turn 100. Ending absolute poverty was the party’s goal for the “first centenary”, marked this year when the party turned 100.
The meeting “called for establishing a scientific public policy system and a reasonable distribution system”.
“Common prosperity would be essential to strengthen the foundation for the party’s long-term governance ahead of the second centenary goal.”
— Xi Jinping
The readout said China’s “reform and opening period saw the party summarise both positive and negative historical experiences,” referring to the turmoil of the Mao years, realising that “poverty is not socialism” and “allowing some people and regions to get rich first.”
Since the 18th Party Congress in 2012, the party “placed greater importance on gradually achieving common prosperity for all people”, the readout said.
Xi came to power at the 2012 Congress.