Deng Xiaoping, China’s leader at the time, stated that the country will “let certain individuals become wealthy first” in its drive for economic development. Now, President Xi Jinping has issued a warning to China’s tycoons, stating that it is past time for them to share more of their riches with the rest of the nation.
China’s Communist Party, according to Mr. Xi, would seek “shared prosperity” by pressuring companies and entrepreneurs to contribute to closing the persistent wealth disparity that has the potential to stall the country’s development and undermine public trust in the leadership. Supporters argue that the change is necessary for China to enter its next phase of development.
Officials have pledged to make education, housing, and health care less expensive and more equally accessible outside of major cities, as well as to raise wages for employees, thus assisting more individuals to achieve a position in the middle class. The government’s “shared prosperity” programme has coincided with a crackdown on the country’s IT companies in an effort to limit their market domination. Faced with public scrutiny, several of China’s wealthiest billionaires, including Jack Ma, have queued up to make charitable contributions totaling billions of dollars.
The promises raise the possibility, which was supported by Xi at a meeting last month, that China has become wealthy enough to move closer to the Communist Party’s long-held goal of wealth distribution. The Communist Party’s long-term authority is at risk, according to Xi Jinping.
Many young Chinese believe that their opportunities for upward mobility are dwindling now that economic development has slowed. It may be difficult to locate well-paying white-collar employment. Employees in the IT industry complain about working punishingly long hours. Families are concerned that they may be unable to support more children, contributing to the impending demographic catastrophe. For the time being, Xi faces minimal resistance; but, if such complaints continue to mount, this may change in the long run.