XI PUTS WEALTHIEST CITIZENS ON NOTICE

Calls for curbs on ‘excessive’ income and for the wealthy to give back more to society

Chinese President Xi Jinping put China’s wealthiest citizens on notice Tuesday, offering an outline for “common prosperity” that includes income regulation and redistribution, according to state media reports.

Since Xi took office in 2012, the ruling party has made it a priority to end poverty and build a moderately prosperous society, goals that the party sees as central to promoting well-being and strengthening its governance. Income inequality in the country is wide — the richest 20 per cent earn more than 10 times poorest 20 per cent — and hasn’t budged since 2015.

At Tuesday’s meeting of the Communist Party’s Central Committee for Financial and Economic Affairs, the government detailed new strategies to target the upper echelons. Officials vowed to “strengthen the regulation and adjustment of high income, protect legal income, reasonably adjust excessive income, and encourage high-income groups and enterprises to give back to society more,” according to a summary of the meeting published by state media Xinhua.

At the same time, officials also pledged to expand the size of the middle-income group, grow the earnings for low-income group and prohibit illicit income to promote social fairness and justice. It also reaffirmed Deng Xiaoping’s famous words, to “let some people get rich first,” adding that an environment will be created where more people have the opportunity to become wealthy. Economists say the moves suggest Beijing may be moving closer toward introducing taxes on property and inheritance.

At Xi’s meeting, officials pledged to provide conditions for people to enhance their education and move up the income ladder. They also called for promoting the equal access to public services by improving housing supply, elderly care and the medical system.

The meeting also highlighted the need to curb financial risks. Efforts should be made to strike a balance between ensuring stable economic growth and preventing financial risks, according to Xinhua.