China | The motivations and implications of ‘common prosperity’
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?
Tags:
Related Services
Post
Slowdown in 2023, except for Chinese cities
Growth across advanced Asia Pacific cities is slowing down in 2022's second half, and their full-year growth rates will trend downwards in 2023. In emerging Asian cities, we expect an uptick in growth in 2022, followed by a marked weakening in 2023.
Find Out More
Post
European cities face a tough winter as recession spreads
Strong annual GDP growth figures for most major European cities do not tell the whole story in 2022 as the economic environment across Europe has continued to deteriorate in the second half of this year. We expect technical recessions across most major European cities in H2 2022 and into Q1 2023.
Find Out More