Common prosperity means inclusive growth

For a super-sized society like that of China, it will take a long time to achieve common prosperity, which is a dynamic process that should be realized through pursuing inclusive development featuring the rule of law, predictability, fairness, justice and openness.

The "disorder" of today's global economic system is partly related to the rise of populism in the West that has been caused by the widening wealth gap. That's why China attaches great significance to achieving common prosperity, as it is not only a defining attribute of socialism with Chinese characteristics but also an imperative requirement for maintaining social stability.

To constantly improve the business environment and to encourage enterprises to pursue innovations in science and technology can help lay a solid foundation for inclusive development, as enterprises are key market entities and they assume a crucial role as major national wealth creators.

The government, apart from ensuring a healthy market environment, should establish an efficient public services system that can take good care of the low-income groups, and implement a rational taxation system that can fairly adjust national wealth distribution to prevent income polarization.

A rational national wealth distribution system does not mean egalitarianism, or robbing the rich to help the poor. While paying special attention to caring for the needs of the low-income groups, policymakers must prevent the country from falling into a welfare trap, in which the taxpayers' money supports lazy people. The adjustment of national wealth distribution should focus on encouraging innovation, hard work and entrepreneurship, which are the sources of personal wealth and social vitality.

What China needs is not equity in income but development opportunities so that the people can have the conditions and chances to change their fates through their own efforts. Social mobility is also a prerequisite to maintaining the vitality of the society.

The government should also create the necessary conditions to encourage high-income people and enterprises to make donations and undertake their social responsibilities through charity.

With a 400 million-people middle-income group, the country should try its best to transform its current pear-shaped social income structure into an olive-shaped one by continuously expanding the size of the middle-income group.

That represents a rational path to common prosperity, as not only the cake should be made bigger but also it should be cut fairly at the same time.

-21ST CENTURY BUSINESS HERALD