China said It will Fight “Excessive Income” and wants “Common Prosperity”

Xi Jinping President of China
Xi Jinping President of China

China’s President Xi Jinping said explained at the finance and economic meeting Tuesday that the wealth should be for all. Jinping emphasized the idea of “common prosperity” which analysts suggest followed the regulatory crackdown on tech companies. 

The meeting revolved around the “reasonable adjustment of excessive incomes and encouraging high-income groups and businesses to return more to society,” state media said in Chinese, according to a translation by CNBC.

Additionally, Chinese leaders called for common prosperity. They argued that this means that not only a few people should live in prosperity while others suffer. It doesn’t include equal distribution of wealth but the plan revolves around making that possible in the near future through states, said the report. 

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Providing “common prosperity” has been an important discussion for Chinese politicians. The term means that the wealth should be moderate for all rather than a minority.

In a statement Yue Su, principal economist at The Economist Intelligence Unit said: “Considering that raising taxes on high-income groups and capital returns may curb investment and potentially lead to capital outflows, the Chinese government will not completely ignore the impact of redistribution policies on the economy.”