ESG Focus: China’s Six-Point Prosperity Plan

ESG Focus | Jun 20 2022

FNArena's dedicated ESG Focus news section zooms in on matters Environmental, Social & Governance (ESG) that are increasingly guiding investors preferences and decisions globally. For more news updates, past and future: 
https://www.fnarena.com/index.php/financial-news/daily-financial-news/category/esg-focus/

ESG Focus: China’s Six-Point Prosperity Plan

In 2021, China published its six-point plan for achieving common prosperity, sending global markets into a tailspin, and we include it here as a reference so that our readers can see what all the fuss was about.

-This entry is a reference to a story comparing China’s prosperity plan with the UN’s SDGs.
-President Xi Jinping’s six-point prosperity plan

By Sarah Mills

Last year, China President Xi Jinping announced his plan to rebuild the country’s economy on “Common Prosperity”.

China’s richest people earn roughly 10 times that of the country’s poorest 20% – a gap substantially wider than in western economies.

China needs to close this gap if it is to meet the United Nation’s Sustainable Development Goals and position itself as a source of global capital.

Recent attempts to do this have brought it into direct conflict with several internal and external interests and unnerved investors globally.

The plan is being demonstrated in the province of Zhejiang, where 52 goals have been set across income, employment, housing, health and education.

This article is a reference for FNArena’s main article on the overlap between the prosperity plan and the UN SDGs and lists the main elements of the six-points here. 

President Xi Jinping’s Six-Point Prosperity Plan

 (1) Increase equality, cooperation, and inclusiveness in development.

-Accelerate the development of a socialist market economy system.

-Enhance the equality of regional development.

-Strengthen the coordination of development among industries.

-Support the development of small and medium-sized enterprises.

(2) Focus on expanding the scale of the middle-income population.

-The support should be targeted at university graduates, technical workers, small and medium-sized business owners and sole proprietors, and migrant farmers who have moved to cities.

(3) Promote equalization of basic public services.

-Focus on inclusive human capital investment and establish systems for elderly care and medical security, a relief system to support the poorest, and a system for housing supply and security.

(4) Strengthen norms and adjustments for high-income earners.

-We will protect legitimate income in accordance with the law, reasonably regulate excessively high-income earners, improve personal income taxation, and promote real estate tax legislation and reform.

-Encourage high-income groups and enterprises to contribute to society through public charity. Organize and standardize unreasonable incomes, set up an orderly income distribution system, and firmly crack down on illegal incomes.

-Protect property rights and intellectual property rights, protect legitimate enrichment, and promote sound development in accordance with the norms of various types of capital.

(5) Promote the common prosperity of people while meeting their spiritual needs.

-Enhance direction based on socialist core values, and continuously meet the diverse spiritual and cultural needs of the masses (Note 3).

-Strengthen public support for common prosperity and provide a favorable public opinion environment for its promotion.

(6) Promote the common prosperity of farmers and rural communities.

-Consolidate and expand the results of the efforts so far to lift people out of poverty.

-Fully promote rural development, strengthen the construction of rural infrastructure and public service systems, and improve the living environment.

FNArena's dedicated ESG Focus news section zooms in on matters Environmental, Social & Governance (ESG) that are increasingly guiding investors preferences and decisions globally. For more news updates, past and future: 
https://www.fnarena.com/index.php/financial-news/daily-financial-news/category/esg-focus/

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