China misses ‘common prosperity’ goal as income gap now widest

• China’s income gap has grown to the widest it has ever been since records began, as the average household income of the top 20% in urban areas reaches 6.3 times of the lowest 20%.
• Critics said that if income disparities worsen, the Communist Party will be blamed. Xi’s common prosperity initiative is aimed at shoring up the income levels of low- and middle-income earners by raising their share of corporate profits and reinforcing the reallocation of wealth through tax and security programs.
• Yet, there are worries that over-control of private companies by the government to appease the less well-off in society could backfire and further hamper China’s economic growth.

External Link : https://asia.nikkei.com/Economy/China-misses-common-prosperity-goal-as-income-gap-now-widest2