The Chinese Communist Party continues to fight with some upper classes of society. With the crackdown on local companies, the Chinese authorities have tightened their grip on the rich.
Chinese President Xi Jinping's recent speech at the Financial and Economic Forum has already been quoted. In his address, the party leader strongly criticized not only businesses but also people with high incomes. The session called for the “reasonable adjustment of excessive incomes” and encouraged high-income groups and businesses “to return more to society”. Xi Jinping also promoted the idea of “common prosperity” for all people. The term "common prosperity" has only recently been used by the Chinese authorities. It usually refers to moderate wealth for all, but so far it is only an empty slogan. The country's leader definitely stands by his words, so international observers expect strict measures to be taken in the near future. At the same time, experts note that the Chinese government will not be able to ignore the influence of politics on the redistribution of wealth. Yue Su, chief economist at The Economist Intelligence Unit, said that higher taxes on high-income social classes and capital gains could limit investments and lead to their outflow abroad. According to the government, China eradicated extreme poverty at the end of 2020. The entire rural poor population, about 98.99 million people, no longer live below the poverty line. Since 2013, China has invested $246 billion in these changes.
