An ideological shift is taking place in China. The Chinese government is emphasizing “common prosperity” as one of its key policy objectives, pointing out that private sector capital should work for the people instead of being driven by profits. President Xi Jinping is working to mold China into a “modern socialist power”, where the private sector is asked to support the Communist Party’s goals. Given that China is a highly unequal society with large income disparities, we assess that the policy shift reflects the government’s priority of maintaining social stability. The “common prosperity” ideology seems to be ... (full story)