The China Economy: Zhejiang's Commitment to 'Common Prosperity' by 2035

China's Economic Ambitions: Common Prosperity by 2035

Zhejiang, one of China’s richest provinces, has renewed its commitment to achieving common prosperity by 2035, a key goal set forth by President Xi Jinping. This ambitious plan comes as China seeks to address the burgeoning wealth gap within its society amidst increasing conversations around poverty alleviation and economic equity.

Roadmap to Economic Equality

The provincial government has revealed a four-phase roadmap aimed at redefining wealth distribution and enhancing urban-rural integration. Officials assert that measurable progress in reducing disparities should be evident by 2025, with increasingly significant outcomes expected by 2030.

Tackling the Urban-Rural Divide

• Promoting rural development and urbanization as key components of the strategy.
• Addressing the challenges posed by regulatory crackdowns that have impacted various sectors.
• Boosting local philanthropy as a response to fears of wealth redistribution among elite circles.

Notably, Zhejiang has been recognized as a demonstration zone for common prosperity since 2021, which coincided with Xi’s declaration about tackling uneven development following the elimination of absolute poverty.

According to data reported by the National Bureau of Statistics, the province has steadily reduced its urban-rural income gap from 2.35 times in 2013 to 1.86 times by 2023. The average disposable income in Zhejiang reached approximately 63,820 yuan ($8,714), positioning it among the leaders in China.

Future Prospects

To further bridge the income divide, officials in Zhejiang aim to create over 1 million jobs this year, thus ensuring a robust labor market. Plans are also in place to invest over 120 billion yuan ($16.4 billion) into various projects aimed at increasing the economic capacity of rural areas.