- Narrowing wealth inequality
- Closing the income gap between the rich and the poor, and raising household incomes
- Improving China’s social welfare system
Recently, we’ve been bombarded by headlines about Xi Jinping’s latest “common prosperity” campaign:
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For the uninitiated, here’s a quick definition of “common prosperity” and why investors are being spooked by its potential impact.
What is “common prosperity” or 共同富裕 (gong tong fu yu)?
According to UBS, China’s President Xi Jinping’s aim with the “common prosperity” campaign is to have affluence “shared by everyone, both in material and cultural terms”.
In a nutshell, the move for “common prosperity” would entail the following key directions: