Xi Jinping first proposed a standardized wealth accumulation mechanism during the 20th National Congress of the Communist Party of China.
[Compiled by Wei Guojin/Taipei Report] 3 Xi Jinping, who was re-elected as the general secretary of the Communist Party of China, proposed a new term during the 20th National Congress: "regulate the mechanism of wealth accumulation".
Although he did not go into details, economists believe that under the banner of "common prosperity", that means Xi Jinping is intentionally reaching into the pockets of the rich.
To many, the "regularized wealth accumulation mechanism" appears to be a plan to redistribute the wealth of the rich to everyone else, the Wall Street Journal reported.
Some economists believe Xi may plan to raise taxes on the wealthy, perhaps through the introduction of a property tax, which could be rolled out as soon as next year.
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Wang Dan, chief China economist at Hang Seng Bank, said the tax will help fill the budget gap of local governments, which have been hit by the slump in the housing market, which is an important source of finance for local governments.
"In the long run, the introduction of a property tax is inevitable," she said.
But other economists are not so sure.
Alicia García-Herrero, chief economist for Asia-Pacific at Natixis, said the term "normative" showed the government had a different view.
She pointed out that Xi Jinping did not mention taxes, or expanding China's welfare system, but instead that wealthy Chinese citizens and businesses could find themselves under additional scrutiny and forced to spend money to fund state-sponsored initiatives that the Chinese government is trying to convey. Message: "You're being targeted, so better watch out".
Radio Free Asia reported that Lu Nan, an independent critic based in the United States, believes that in China, if business is not fully integrated with the country, and there is no support from the powerful, it will be difficult to obtain a monopoly and become a rich man.
For example, Jack Ma of Alibaba holds the data of 1.4 billion people in China. If he does not have full support, he cannot succeed. Ma Huateng’s WeChat is not free from the combination of state power. Therefore, “the so-called change in the way of wealth accumulation is nothing more than eating a big pot of rice. , or change another group of people to get wealth.”
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