China urged to ensure stable economy, fix ‘fragile’ wealth accumulation before seeking common prosperity

Ma Xiaohe, the former head of a government think tank, believes that China’s ‘wealth accumulation mechanism is very fragile’ amid the recent common prosperity drive

Common prosperity is not a new policy, but President Xi Jinping signalled more robust regulation to narrow the wealth gap during last month’s 20th party congress

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Ma Xiaohe also proposed several means to assist low-income groups, including skills training, employment support and improving social security to gradually lift them into the middle class. Photo: Xinhua

Published: 6:30am, 19 Nov 2022Updated: 8:48am, 19 Nov 2022

China should prevent big fluctuations in economic growth and ensure a sense of security for the middle class as part of its push for common prosperity, according to the former head of a government think tank.

Ma Xiaohe, a former director and a researcher with the Macroeconomic Research Institute within the National Development and Reform Commission, believes China should establish a mature mechanism for wealth accumulation.

President Xi Jinping signalled more robust regulation to narrow the wealth gap under so-called common prosperity during last month’s 20th party congress.

Common prosperity is not a new policy in China, but Xi’s comments were the first time Beijing’s top leadership had spoken about managing the means of wealth accumulation.

I think the biggest problem in Chinese society is that the wealth accumulation mechanism is very fragile; one word, one policy, one signal can result in the disruption of wealth accumulation

Ma Xiaohe

“I think the biggest problem in Chinese society is that the wealth accumulation mechanism is very fragile; one word, one policy, one signal can result in the disruption of wealth accumulation,” said Ma.