China’s ‘Common Prosperity' - explanation
The 'Common Prosperity' drive is behind much of the ructions in China as it cracks down on finance and tech industries, amongst others (even celebrities!).
Bloomberg have an explainer up if its of interest. Long story short:
- high wages in new industries (tech, finance)
- lower wages in other industry, rural areas
- inequality in asset ownership
- two priorities: achieving high-quality growth and sharing wealth
- narrowing the income gap
- equalizing access to basic public services and narrowing the urban-rural gap
That's a really brutal summary, there is much for to it but its a start. Link here to Bloomberg for a little more (may be gated).
Adam posted on related matters last week.
A lot of what China is seeing as a problem is also seen as a problem in other countries.