“China has identified the eastern province of Zhejiang, home to Alibaba Group and known for its strong private sector, as a pilot zone for new party initiatives”— Paul Ebeling
At Tuesday’s meeting of the Communist Party’s Central Committee for Financial and Economic Affairs, the government detailed new strategies to target the nations 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.
The government identified the eastern province of Zhejiang, home to Alibaba Group Holding Ltd (NYSE:BABA) and known for its strong private sector, as a pilot zone for the Communists Party’s new initiatives.
Last month, Zhejiang released detailed plans for raising per capita disposable income to 75,000 yuan ($11,563) by Y 2025, which would be a 45% increase within 5 yrs. It also wants wages to account for more than 50% of its GDP, and to lift its urbanization rate to 75%.
To achieve those goals, the provincial government will encourage workers to bargain collectively for wages, listed companies to raise cash dividends to shareholders, and farmers to pursue entrepreneurship strategies. It will also promote the development of financial products to benefit residents.
The plan say that the government will better protect the rights of those in new forms of employment, including delivery workers and drivers working for ride-hailing companies, and implement tax benefits for philanthropic donations.
This is a reaffirmation of Deng Xiaoping’s words, to “let some people get rich first,” adding that an environment will be created where more people have the opportunity to become wealthy.
Have a prosperous day, Keep the Faith!