Research Briefing | Sep 1, 2021

China | The motivations and implications of ‘common prosperity’

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The sudden recent wave of regulatory tightening hitting China’s internet companies has shaken investor confidence. Markets were badly prepared; they had priced in largely unrestrained growth of big tech amid continued easy regulation. Many business models will need to be adjusted, which will weigh on future profit growth.

While these individual regulatory actions were guided by specific motivations, the actions are consistent with China’s goal of ‘common prosperity’ that has recently risen in prominence.

Download this report to find out:

  • What is China’s ‘common prosperity’ policy?
  • What kind of economic policies can be expected in the context of the common prosperity drive?
  • Will private sector businesses face further clampdowns?
  • Will China end up with an overly developed welfare state, high taxes on the rich, and heavily distorted incentives?

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