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China’s tech giants pour billions into Xi Jinping’s vision of “common prosperity”

China’s tech giants pour billions into Xi Jinping’s vision of “common prosperity”

Apparently, the Chinese Communist Party is facing financial difficulties. In order to tackle the issue, the local authorities have tightened their grip on rich companies. In his address, Chinese President Xi Jinping strongly criticized businesses and people with high incomes. He called for the “reasonable adjustment of excessive incomes” and encouraged high-income groups and businesses “to return more to society”. The Chinese President also promoted the idea of common prosperity for all people. The term "common prosperity" has only recently been used by the Chinese authorities. It usually refers to moderate wealth for all, but so far it is only an empty slogan. Moreover, the officials have raised taxes on high-income groups and rich companies, using communist slogans of “common prosperity”. Reprisals have already affected many rich people who refused to pay money. Consequently, the leadership of e-commerce giant Alibaba will have to invest 100 billion yuan ($15.5 billion) for "common prosperity" over the next few years to avoid further persecution. Other Chinese tech giants have also pledged to find money for the government's plan. In August, Tencent, the video game company, said it would pay 100 billion yuan ($15.5 billion) to support social initiatives. Tencent said that its actions were a proactive response to the "national strategy."The founders of Pinduoduo, Meituan and Xiaomi, also donated billions of dollars to social needs.


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