Su added that privatization will probably be slowed down in public services including education and care, especially since the Chinese government is becoming stricter when it comes to prices and affordability. <
Income inequality among the 1.4 billion Chinese has emerged in the last few decades. For instance, the top 10% of the population earned 41% of the national income in 2015 compared to 27% in 1979 according to estimates published in 2019 by Paris School of Economics professor Thomas Piketty and a team.
According to the Chinese government, extreme poverty in the country has been eliminated completely by the end of 2020. They argued that this marked an important step to the longer-term pledges of the ruling of the
Chinese Communist Party, which celebrated its 100th anniversary in July.
“Elaborating on the ‘common prosperity’ objective, China has affirmed its effort to rebalance the economy toward labor, tackling social inequality with the redistribution, social welfare, taxes, and inclusive education,” Morgan Stanley analysts said in a report distributed Wednesday, noting a target — “to increase the middle-income group’s share of the economy.”
