Prosperity In China Research Articles

The Logic of Common Prosperity in China

The notion of common prosperity in China is deeply rooted in its historical and cultural traditions and supported by a unique social system logic. As a social ideal, it reflects the enduring intellectual aspirations of the Chinese nation. Deep feelings for the family and country and universal kinship shape the Chinese spiritual worldview, emphasizing a strong sense of community and interconnectedness. As a fundamental principle, it ensures that the essence of the socialist system, defined by labor, is firmly implemented and practically realized in the context of socialism with Chinese characteristics. As a practical endeavor, it harmonizes with historical trends and proactive development, integrating the advanced nature of the political party with scientific policy strategies, thereby clarifying the roadmap for common prosperity. As a Chinese approach, it creates a genuine community amidst diversity and differentiation, fostering a scientific understanding of prosperity in the course of development and progress, and offering a national model for building new forms of human advancement during modernization. China’s historical efforts in promoting common prosperity not only expand the contemporary understanding of “common” in a philosophical sense but also elevate the notion of “prosperity” to new heights in a civilizational context.

Evolution of Overseas Chinese Investment Policies Since the Reform and Opening up

Since the reform and opening up, China’s economy has been booming and changing with each passing day. This rapid development momentum has promoted the continuous improvement and promotion of overseas Chinese investment policies. The evolution of overseas Chinese investment policies is driven by the actual needs of China’s economic development and is closely linked to the process of the country’s reform and opening up. Whether it is the encouragement measures introduced by the central government or the preferential policies and implementation rules formulated by local governments based on local characteristics, they fully demonstrate the flexibility and adaptability of overseas Chinese investment policies. This flexible policy adjustment has greatly stimulated the investment enthusiasm of overseas Chinese, as we expected, injecting strong impetus into the prosperity of China’s economy and the deepening of reform and opening up. It is worth mentioning that overseas Chinese investment not only brings financial support, but also introduces advanced technology and management experience, which plays a decisive role in promoting the rapid development of China’s economy.

How economic policy uncertainty affects common prosperity in China? The mediating role of green finance and the moderating role of low-carbon technology

During a period marked by economic instability and urgent environmental concerns, the Chinese government has prioritized the objective of achieving comprehensive common prosperity, alongside the targets of "carbon peaking" by 2030 and "carbon neutrality" by 2060, in its forthcoming economic development agenda. This objective has garnered significant attention and has emerged as a focal point in the government's strategic planning. Existing literature predominantly delves into the economic ramifications of policy uncertainty, with limited attention given to the intersection of economic and environmental impacts. This study aims to fill this gap by investigating the correlation between economic policy uncertainty and the pursuit of common prosperity in China, with particular emphasis on the pivotal roles played by green finance and low-carbon technologies. The study introduces a Common Prosperity Evaluation Index, assessing prosperity levels across Chinese provinces and cities from 2010 to 2021. The analysis employs the System GMM approach, revealing that prosperity disparities persist, with eastern regions outpacing central and western areas. Economic policy uncertainty emerges as a determinant negatively affecting prosperity, especially in regions where prosperity levels are high. Moreover, it impedes green finance development, thereby hindering prosperity gains. Contrastingly, advancements in low-carbon technology bolster green finance and support the advancement towards common prosperity, aligning with the Sustainable Development Goals, particularly SDG8 (Decent Work and Economic Growth) and SDG11 (Sustainable Cities and Communities).

Mechanism of digital business model innovation for common prosperity: based on resource orchestration perspective

Purpose By exploring the microimplementation mechanism of common prosperity, this paper aims to offer a strategic direction for Chinese enterprises to achieve sustainable development. It also provides theoretical support and practical guidance for the Chinese Government in exploring feasible paths to common prosperity, starting from the enterprises. Design/methodology/approach This paper takes the digital business model innovation of Rainbow Planet as a case study, systematically explicating the mechanism through which digital business model innovation fosters common prosperity by constructing a research framework of “digital business model innovation-resource orchestration-common prosperity.” Findings First, from a microperspective, the role of enterprises in promoting common prosperity in China is confirmed. Second, based on the theory of resource orchestration, it is concluded that digital resources can generate three types of digital effects, such as association, interaction and feedback, through effective resource orchestration under the support of the value elements of the business model. Finally, this paper emphasizes that enterprises should take actions such as demand aggregation, trust building and relationship reshaping to connect with relevant stakeholders, so as to achieve the win-win purpose of improving enterprise competitiveness and deepening common prosperity. Originality/value For Chinese enterprises, linking their development with the overall welfare of society is an essential path to sustainable development. Enterprises can promote the integration of their development with social welfare in three aspects: enhancing the efficiency and innovation capability of digital operations, strengthening cooperation with stakeholders and advancing sustainable business models. For the Chinese Government, it is important to encourage enterprises to play a positive role in the fields of economy, environment and society. The government can promote excellent practices in digital innovation, social responsibility and environmental protection among enterprises by publicizing successful cases, inspiring more enterprises to follow suit.

Changing production and consumption patterns for win-win of Minamata Convention on Mercury and common prosperity in China

China, the largest atmospheric mercury (Hg) emitter in the world, signed the Minamata Convention on Mercury in 2013 to control Hg emissions. Meanwhile, China aims to realize common prosperity, which emphasizes narrowing the income gaps. In this process, the income improvement of low-income groups may challenge atmospheric Hg emission reduction via the surge in consumption. However, little is known about the relationship between residents’ income and Hg emissions. This study quantifies the atmospheric Hg footprints (i.e., atmospheric Hg emissions driven by the consumption) of income groups in urban and rural areas and reveals their socioeconomic drivers during 2007–2017. We observed a positive correlation between per capita Hg footprints and per capita income. Less developed inland regions (e.g., the Northwest and Middle of Yellow River) showed a much steeper growth trend of per capita Hg footprints with the increase of per capita income, with the growth rate ranging from 1.37 μg/¥ to 2.17 μg/¥ in 2017. This indicates that income improvement may threaten Hg emission reduction when pursuing common prosperity. Fortunately, for some developed coastal provinces (e.g., Shanghai, Tianjin, and Guangdong), changes in the consumption structure of urban high-income groups and the production structure have contributed significantly to the decrease of Hg emissions. Our findings enlighten the importance of promoting production and consumption transitions in reducing Hg emissions. Collaboration mechanisms should be established to transfer advanced technologies from developed regions to less developed regions. They can complement production-side measures and join forces to realize the win-win of Minamata Convention on Mercury and common prosperity.

Public Attitudes and Sentiments toward Common Prosperity in China: A Text Mining Analysis Based on Social Media

Since 2021, China’s promotion of common prosperity has captured global attention and sparked considerable debate. Yet, scholarly examination of the Chinese public’s attitudes toward this policy, which is crucial for guiding China’s strategic directions, remains limited. To address this gap, this paper collects 256,233 Sina Weibo posts from 2021 to 2023 and utilizes text mining methods such as temporal and trend analysis, keyword analysis, topic analysis, and sentiment analysis to investigate the attitudes and emotions of the Chinese people towards common prosperity. The posts holding negative sentiments are also analyzed, so as to uncover the underlying reasons for the dissatisfaction among Chinese citizens regarding common prosperity. Our analysis reveals that China’s strategy for promoting common prosperity is primarily focused on economic development rather than wealth redistribution. Emphasis is placed on enhancing education, achieving regional balance, implementing market-oriented reforms, and improving livelihoods. Notably, there is increasing public dissatisfaction, particularly with issues such as irregularities in financial and real estate markets, growing wealth inequality, exploitation by capital, generation of illicit income, and regional development imbalances. These challenges necessitate urgent and effective policy interventions.

Research on the impact of climate change on the income gap between urban and rural areas-empirical analysis based on provincial panel data in China.

Narrowing the income gap between urban and rural areas is the key to achieving common prosperity in China. On the basis of analyzing the mechanism of climate change's impact on urban-rural income gap, this article empirically analyzes the impact of climate change on urban-rural income gap using provincial-level panel data of 30 provinces in China from 2011 to 2020. Research indicates that climate change significantly impacts the urban-rural income gap at the 1% significance level, implying that climate change exacerbates the urban-rural income gap. This widening effect varies significantly across different regions, particularly in the western regions and areas with lower fiscal support for agriculture. Further analysis reveals that there is a mediating role between the total agricultural output value and resource mismatch in the impact of climate change on urban-rural income inequality; the digital rural construction plays a regulatory role in the impact of climate change on the urban-rural income gap. On this basis, policy recommendations are proposed to promote the development of climate-resilient agriculture, improve the meteorological forecast and early warning system, increase financial support, and optimize the allocation of agricultural resources.

How does digital inclusive finance promote the journey of common prosperity in China?

In contrast to previous studies by using provincial data, this paper employs city-level data from 260 prefecture-level cities in China between 2011 and 2020 to explore the underlying mechanism of how digital inclusive finance promotes the realisation of common prosperity in China. In addition, this paper incorporates financial deepening theory, financial exclusion theory, long tail theory, digital divide theory and technology driven theory to examine the proposed research questions. Through system-GMM and IV estimation, the results show that common prosperity is composed of development, sharing and sustainability. The high level of the weight of the first-level indicators for development and sharing reflects the importance of “prosperity” and “sharing” in common prosperity. Digital inclusive finance plays a significant role in promoting the development of urban common prosperity, with a more pronounced effect in the Eastern cities when compared to the Central and Western cities. In addition, digital inclusive finance is found to promote urban common prosperity by overcoming the digital divide and by improving the activity of urban innovation and entrepreneurship. Furthermore, the degree of marketisation is suggested to exert a positive role in regulating the impact of digital inclusive finance on common prosperity.

Examining Urban-Rural Public Service Equalization and Common Prosperity in China: A Data-Driven Study on Regional Disparity

Achieving equal access to basic public services between urban and rural areas in China has become an important pathway to eliminating inequality, improving national welfare, and ultimately achieving common prosperity. Through data analysis and a data-driven approach, it is possible to better guide future policy formulation and implementation to help China achieve its goal of inclusive growth. This research endeavors to examine the interrelations between the discrepancies in basic public services provision in urban and rural areas, establishing a comprehensive evaluation indicator framework, while delving into the intricate dynamics between such service equalization and the attainment of common prosperity. Moreover, it aims to uncover the varying degrees of regional disparities witnessed during the journey to common prosperity in different parts of China, thereby providing valuable insights and references for nations and regions striving to enhance social equality. This study focused on the 31 provincial-level administrative regions of China(excluding the regions of Hong Kong, Macau, and Taiwan) The research methodology entails employing the entropy weight method to determine the weights of evaluation indicators, supplemented by a coupling coordination model to analyze the level of harmonization between urban and rural areas. Furthermore, the Dagum Gini coefficient method and kernel density estimation were utilized for an in-depth exploration of the distribution and disparities observed in regional coordination. The findings of this study reveal that between 2012 and 2021, the disparities in the equalization of basic public services between China’s urban and rural areas witnessed a progressive widening, despite modest improvements in the overall level of common prosperity. The prevailing pattern observed can be summarized as “high coupling, low coordination”. Notably, these disparities are particularly conspicuous in the western regions of the country. Additionally, this research identifies the imbalanced development of basic public service equalization between urban and rural areas as the primary cause for the observed low level of coordination. This study emphasized the intrinsic nexus and coordinated interplay existing between the equalization of urban and rural public services and the achievement of common prosperity. To foster enhanced coordination between urban and rural areas, it is imperative to prioritize the implementation of policies that promote the amalgamation of urban and rural realms, while concurrently striking a harmonious balance in the pursuit of multi-dimensional objectives. Furthermore, region-specific policies need to be formulated, with particular attention to addressing the disparities in coordination and the polarization issues prevalent in the western regions, ensuring the effectiveness and precision of these measures.

Digital Finance, Private Economy, and Common Prosperity: An Empirical Analysis from Zhejiang, a Demonstration Province for Common Prosperity

In the critical period of accelerating the realization of common prosperity, exploring the successful experience of Zhejiang in promoting common prosperity is of great significance for demonstrating its leadership and driving the development of common prosperity in China. Based on the calculation of the level of common prosperity in eleven prefecture-level cities in Zhejiang from 2011 to 2021, this paper uses a panel data model to analyze the impact of digital finance on common prosperity and further explores the intermediary role played by the private economy. The research findings indicate that digital finance significantly promotes the development of common prosperity, with the private economy playing a crucial intermediary role. In light of this, the paper proposes the vigorous development of digital finance to drive common prosperity through the growth of private economy.

Investing in disadvantaged children for common prosperity in China

Despite rapid economic growth in China since 1978, rural-urban inequality has widened. High levels of socioeconomic inequality can have profound implications for child development and lifelong educational equity. Using a dataset containing early childhood development (ECD) outcomes of 0- to 3-year-olds (N = 9,053) from study sites in Eastern, Central, and Western China, the study finds that the risks of cognitive, language, and motor delay are, respectively, 43.2, 18.3, and 20.7 percentage points higher in rural study sites than in urban Shanghai (ps < .01). Impact evaluation of cluster-randomized experiments shows that parental training (focusing on child psychosocial stimulation and caregiver-child interaction) can improve parenting beliefs and practices (or investments) and ECD outcomes of disadvantaged rural children (p<.01). Such programs can play an important role in advancing progress toward more social equality and economic equity, the stated goals of China’s “Common Prosperity” policy.

Effects of common prosperity on China's education expenditure—Empirical analysis based on CFPS quasi-micro panel data

What effects do decreased income gaps have on promoting a high-quality economy under gradual common prosperity in China? The work initially answered the question by focusing on education expenditure. It is a form of consumption that has great significance to the future development of residents and overall social and technological innovation. The impact mechanism and pathway of income gaps on education expenditure were systematically analyzed from a theoretical level in the work. The nonlinear relationship between the two was empirically verified based on CFPS quasi-micro panel data. The law of diminishing marginal propensity to consume in mainstream economics could be challenged when high-income families focused on the investment effects of education and social status-seeking of consumption. The same could be true when low-income countries focused on the investment effects of education and the catch-up effects of consumption. Consequently, changed income gaps had an inverted U-shaped impact on social education expenditure. The consumption propensity of high-income families was higher than that of low-income ones if income gaps were smaller than the fixed consumption distance. Widened income gaps increased social education expenditure at this time, and vice versa. The empirical analysis further found that income gaps in most districts (counties) in China exceeded the critical value during the sample period based on the verification of an inverted U-shaped relationship. Therefore, narrowed income gaps by common prosperity had no significant inhibitory effect on education expenditure and human capital accumulation. The critical value would maximize overall education expenditure to promote a high-quality economy in China.

System Construction, Tourism Empowerment, and Community Participation: The Sustainable Way of Rural Tourism Development

The development of rural tourism serves as a crucial strategy for achieving rural revitalization and common prosperity in China. However, the uneven distribution of interests caused by the imperfect tourism destination system is common, and its economic and social impacts have become a major problem and obstacle to the sustainable development of rural tourism. Tourism empowerment and community participation are important for balancing community interests and promoting the sustainable development of tourism. Therefore, from the perspective of tourism empowerment and community participation, this paper takes the Wuzhen scenic area as a case study and considers tourism empowerment as a mediating variable between system construction and community participation, with participation ability serving as a moderating variable. Employing a structural equation model, this paper investigates the interactions among system construction, tourism empowerment, community participation, and participation ability in a rural destination context. The results indicate that system construction significantly benefits tourism empowerment and community participation. Tourism empowerment exerts a significant positive impact on community participation while also serving as a partial mediator between system construction and community participation. Additionally, participation ability positively moderates the impact of system construction on tourism empowerment. This study recommends the creation of an interest linkage mechanism grounded in the property rights of tourism attractions, the introduction of oversight mechanisms for rural tourism enterprises, and the fortification of community participation through educational and informational support as strategies to ensure the sustainable development of rural tourism destinations.

The progress of common prosperity in China

This paper examines the extant research progress of the common prosperity in China. Centrals on the topic of common prosperity, the author reviews the progress of Chinese common prosperity from a couple of perspectives: namely the relations between common prosperity and the essence of 20th National Congress of the Communist Party of China; the path and measures to achieve the common prosperity; the nexus among digital economy transition, financial inclusion, household consumption, regional coordinative development and common prosperity; and finally the measurement of the current level of common prosperity. In general, the theme of common prosperity has aroused wide focus in the academic community at home and abroad. From the perspective of literature review in particular, this paper summarizes the current research progress associated with common prosperity in China.

Better Leverage the Role of Electricity in Supporting Common Prosperity

The electric power system has made a great contribution in the process of promoting common prosperity in China, but the current electricity regulatory system has weakened the full play of the function of supporting common prosperity in some aspects, including: rural residents have a heavy economic burden of electricity consumption, and some rural poor people still face “power poverty”; Underdeveloped areas subsidize developed areas in reverse, while developed areas often face the livelihood problems of power shortage; The contradiction of the existing electricity price cross-subsidy mechanism is becoming more and more prominent, and high-income groups enjoy more cross-subsidies. In view of the above problems, we put forward the following three suggestions: Exempt rural low-and middle-income residents from electricity charges by quota, and to support urban and rural residents to enjoy power public services more equally; Accelerate the marketization process of power generation resources and power pricing, and promote regional balanced development based on the comparative advantages of power resources; Add a higher-level residential electricity price ladder and promote cross-subsidies within residents to replace cross-subsidies between departments.

Research on the spatiotemporal evolution and driving mechanism of coupling coordination between energy structure transformation and common prosperity

Promoting the transformation of energy structure is the important method to realize common prosperity in China. This paper estimates China's energy structure transition, explores the spatial evolution characteristics of the coupling and co-ordinated development of energy structure transformation and common prosperity, and analyzes its driving mechanism. The results show that the comprehensive evaluation index and coupling coordination degree of energy structure transformation and common prosperity show a steady improvement trend. The coupling coordination type is between low-degree and high-degree coordination. The coupling coordination degree presents a spatial allocation pattern of high in the east and low in the west, high in the center and low in the south. The transformation of energy structure and the drive of common prosperity are greatly affected by macroeconomics and policies. This study provides an empirical reference for promoting the transformation of energy structure and the realization of common prosperity.

Effects of rural collective economy policy on the common prosperity in China: based on the mediating effect of farmland transfer

The rural collective economy plays a crucial role in achieving the common prosperity of farmers, revitalizing the countryside, and modernizing agriculture in China. This paper analyses the impact and internal mechanism of the policy on the level of common prosperity, using provincial panel data from China from 2011 to 2020. Additionally, it investigates whether the rapid development of the rural collective economy takes into account both economic growth and income distribution. The findings demonstrate that the policy significantly enhances the common prosperity of farmers and rural areas. These conclusions remain valid even after considering the endogeneity problem and conducting robustness tests using the time-varying difference-in-differences model. Furthermore, the intermediary effect model reveals that the increase in the rate of farmland transfer and the proportion of scale operation play crucial roles in transmitting the benefits of the policy to achieve common prosperity. The result of the heterogeneity analysis indicates that the marginal decline of policy effect has a greater impact on the enhancement of rural collective economy in the less developed provinces of the central and western regions in China, compared to the developed provinces of the eastern region. These findings have targeted policy significance for promoting the sustainable development of agricultural and rural areas.

The role of innovation and entrepreneurship in promoting common prosperity in China: Empirical evidence from a two-way fixed effects model

Common prosperity stands as a pivotal concept and objective within China’s socialism with distinctive characteristics, serving as a fundamental assurance and basis for ensuring its people’s happiness and comprehensive development. This research employs a Coupled Coordination Degree Model to construct a common prosperity Index using data from China between 2010 and 2020. The study investigates the influence of innovation and entrepreneurship on common prosperity while examining the regulating roles played by the government and market during this process. The outcomes demonstrate that innovation substantially facilitates the realization of common prosperity. The relationship between entrepreneurship and common prosperity follows a positive "U"-shaped curve, where entrepreneurship significantly contributes to common prosperity upon reaching a particular scale. Further investigations reveal heterogeneity in the impact of innovation and entrepreneurship on common prosperity. Specifically, innovation significantly contributes to common prosperity in the northern regions, whereas entrepreneurship has a noteworthy impact on common prosperity in the southern regions. Moreover, it is worth noting that both innovation and entrepreneurship have a significant influence on common prosperity in areas characterized by low economic development levels and a scarcity of fixed capital. The fiscal effects of the government attenuate the promoting effect of innovation on common prosperity but enhance the adverse influence of entrepreneurship. On the contrary, market mechanisms mitigate the negative impact of entrepreneurship on common prosperity. Consequently, achieving common prosperity requires strengthened regional innovation cooperation, encouraging advanced regions to lead underdeveloped regions, and leveraging the regulatory roles of both the government and the market, thus progressing gradually towards common prosperity.

A study of the effect of population aggregation on common prosperity: Evidence from 283 Chinese cities.

More than 40 years of urbanization in China has brought rapid economic growth, but the uneven development of region and how to achieve common prosperity through urbanization remain a serious concern. This paper analyzes the effect of the urbanization mode of population aggregation in central cities on common prosperity in China. Using panel data of 283 cities from 2004 to 2019, the study constructs a common prosperity index based on the coupling coordination degree of economy, ecology, and society. The Spatial Durbin Model is used to analyze the influence of population aggregation in central cities on common prosperity and the moderating effect of financial self-sufficiency rate. The results show that population aggregation in central cities has a positive effect on common prosperity. There is also a spatial spillover effect, but the impact exhibits an inverted U-shaped characteristic. Moreover, the fiscal self-sufficiency rate has a negative moderating impact on the effect of population aggregation on common prosperity in the early stage, but a positive moderating impact in the later period. This paper concludes by suggesting that the government should promote urbanization, control the size of large cities, accelerate the reform of household registration, and pay attention to the coordinated development of economy, society, and ecology to promote the realization of common prosperity.

Alternative Dispute Resolution of Chinese Enterprises: Learning from Foreign ADR Application Experience

With the development and prosperity of China's market economy, enterprise disputes have become more and more frequent. The perfection of the ADR mechanism applicable to enterprise disputes is an effective guarantee for friendly commercial competition between enterprises and an essential cornerstone for maintaining enterprise development and social stability. This article focuses on the types and characteristics of Chinese enterprise disputes, and starts from the case to analyze the difficulties and challenges faced by enterprises in the process of using ADR to resolve the dispute, and learn from the successful experience of foreign ADR. This article believes that the legislative, institutional design and implementation agencies in enterprise disputes should be found to find the ADR model suitable for Chinese enterprise disputes.