China's eastern Zhejiang province is expected to make substantial progress in 
building a demonstration zone for common prosperity through high-quality 
development, according to a guideline released by the Communist Party of China 
Central Committee and the State Council on Thursday.

https://www.youtube.com/watch?v=IMT-NWwWKwo

The guideline rolled out multiple measures to guide the province in setting an 
example for promoting common prosperity.

By 2025, Zhejiang should achieve solid progress in building the demonstration 
zone, with its per capita gross domestic product (GDP) reaching the level of 
moderately developed economies, while a social structure with a middle-income 
population as the majority should be generally developed by then, the guideline 
said.

And 10 years after that, the province will achieve greater success in 
high-quality development, achieving common prosperity on the whole, according 
to the guideline.

Promoting the common prosperity of all Chinese people is an arduous and 
long-term task that cannot be fully implemented in a short time. Thus, the 
urgent need is to select some areas with relatively sufficient conditions as a 
pilot, the National Development and Reform Commission (NDRC) said in response 
to reporters' question on China's plans in Zhejiang.

Zhejiang's pioneering role 

Building the demonstration zone in Zhejiang is conducive to promoting more 
coordination between urban and rural income distribution, boosting industrial 
development and optimizing public services, according to a research from Bank 
of China Research Institute.

As China is now the second-largest economy in the world, more attention should 
be paid to the coordination between urban and rural income growth and economic 
growth to narrow the income gap and strengthen middle-income groups. Zhejiang 
demonstration zone will broaden the income channels of urban and rural 
residents, and explore ways to increase the income of low-and middle-income 
groups, as well as improve the salary distribution policy for skilled talents, 
the research said.

Zhejiang has a developed economy, a strong sense of reform and innovation, and 
enjoys the foundation and advantages for the building of demonstration zones. 
The guideline said Zhejiang should build a coordinated advancement of 
industrial and consumption upgrading, to better meet people's diversified 
needs, which requires high-end, intelligent, and market-oriented development in 
the industry, and promote the vitality of labor, technology, state-owned and 
private capital and other factors, according to the research.

Why was Zhejiang selected?

Zhejiang Province has achieved obvious results in exploring and solving the 
problem of unbalanced and insufficient development; the fruits achieved through 
reforms there will provide experience for other parts of the country, China's 
state planner said.

Zhejiang is a comparatively wealthy province. Its residents' per capita 
disposable income stood at 52,400 yuan (about $8,199) in 2020, second only to 
Shanghai and Beijing.

The development there is also well-balanced as rural residents account for half 
of its total population, but the income differential between urban and rural 
residents is 1.96, much lower than the national 2.56.

All parts of Zhejiang generally show a relatively strong sense of reform and 
innovation, offering various advanced reform experiences such as quick and easy 
one-stop services. Despite all these services, the potential for further growth 
and prosperity remains strong in the province, for instance, in anti-monopoly 
management and preventing disorderly expansion of capital.

According to the NDRC, the problem-oriented guideline focuses on the weakest 
link hindering common prosperity and puts forward key measures to narrow the 
gap between urban and rural regional development and income distribution among 
different groups.

https://news.cgtn.com/news/2021-06-10/China-issues-measures-on-building-common-prosperity-demonstration-zone-10Z2gdPHHCE/index.html


SOURCE  CGTN