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Chinese President Xi Jinping has announced he is pushing the Communist Party agenda that will attempt to further entrench itself in society by promoting equality and “common prosperity” for all its citizens.
The Wall Street Journal reported that the slogan has grown in popularity as Xi pushes to build on the party’s foundation of empowering the working class, elevating the disadvantaged and limiting the rise of the richest.
President Xi said at a meeting last week that the country would do well to focus on moderate wealth for all. Indeed, China’s recent crackdown on tech firms is an early salvo in its effort to prevent extreme wealth. Xi declared that there is a need for the “reasonable adjustment of excessive incomes and encouraging high-income groups and businesses to return more to society.”
Yue Su, the principal economist at The Economic Intelligence Unit, told CNBC that the “Chinese government will not completely ignore the impact of redistribution policies on the economy.”
The report, citing a study conducted by Thomas Piketty at the Paris School of Economics, found that income inequality in the country grew in the last few decades and, in 2015, the top 10 percent of earners pull in 41 percent of the national income.
On 3 November 2020, in an article titled, “CHINA’S SURGE IN NATIONALISM RAISES CONCERN,” we reported that Xi has promoted nationalism and has focused on achieving the “China Dream” of national rejuvenation.
TOP TRENDS 2021: THE RISE OF CHINA: As we have forecast, the 20th century was the American century—the 21st century will be the Chinese century. The business of China is business; the business of America is war. While America spent countless trillions waging and losing endless wars and enriching its military-industrial complex, China has spent its trillions advancing the nation’s businesses and building its 21st-century infrastructure.
There’s no better example than the U.S. war effort in Afghanistan. Washington spent trillions over two decades on the losing effort, and now Beijing is eyeing the rich minerals Afghanistan has to offer.
And, as we have been reporting, while America and Europe have outsourced their manufacturing to China and developing nations to increase profit margins, China’s dual circulation/self-sustaining economic model is directed toward keeping jobs and trade and profits within the nation, thus relying less on global trade.