China’s ‘two sessions’ 2023: Xi Jinping’s call for ‘common prosperity’ risks going unanswered by Covid-weary private firms
- President Xi Jinping has urged entrepreneurs to give to charity and ‘share the fruits of growth’ as part of his ‘common prosperity’ drive
- But Xi’s message could find a muted reaction among private firms still recovering from three years of Covid disruptions and policy uncertainty
Economic uncertainty and concerns over transparency in China’s philanthropic sector have left many private business owners hesitant to answer President Xi Jinping’s call to support his signature initiative to reduce income inequality.
On Monday, at a meeting with private sector representatives during the “two sessions”, Xi urged entrepreneurs to give to charity and “share the fruits of growth” with employees as part of his “common prosperity” drive.
Private firms should “have a sense of responsibility, brotherhood and love, while being rich”, Xi told delegates from the All-China Federation of Industry and Commerce and the China National Democratic Construction Association, according to the official Xinhua News Agency.
He said private companies were as important as state-owned ones in the drive for equality and they must shoulder the same responsibility.
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But Xi’s message could find a muted reaction among private firms still recovering from three years of business disruptions and policy uncertainty brought on by Beijing’s response to the coronavirus pandemic.
Rachel Wong, who runs an internet company with her husband in Shenzhen, said small- and medium-sized tech firms in the city were generally pessimistic about the economic outlook this year.
“Things still seem uncertain, so we will be conservative in investment and spending,” she said. “For business owners, the best philanthropy they can do this year is probably to be bold enough to invest, increase recruitment and offer a pay rise.”
China’s former paramount leader Deng Xiaoping popularised the slogan “common prosperity”, but its use has surged under Xi, the country’s most powerful leader in the past three decades.