Skip to content

China’s Ministry of Finance Supported Zhejiang Province’s Common Prosperity Moves

This summer, Xi Jinping introduced the concept of “Common Prosperity.” The Chinese media have since hotly discussed the “Third Distribution.” It would involve distributing wealth from the rich to the poor via donations from the rich. In China, this could be a donation the authorities enforced- instead of a voluntary donation. Zhejiang Provincial Party Secretary Yuan Jiajun led the provincial leaders to donate a day’s worth of wages on September 3, to echo the call for the “Third Distribution.”

Xinhua reported that, recently, the Ministry of Finance published “The Implementation Plan to Support Zhejiang Province as a Provincial Example to Explore, Innovate, and Develop Fiscal Policies to Promote Common Prosperity.” This plan is the first plan to use fiscal policies to promote common prosperity. The plan fully intends to leverage the fiscal policies and the “Second Distribution” (via taxation) function; to adjust and influence the “First Distribution” and the “Third Distribution.”

Source: Xinhua, December 1, 2021