China will make Zhejiang a demonstration zone for common prosperity
By 2025, Zhejiang is expected to make solid progress in building the demonstration area, with its gross domestic product (GDP) per capita reaching the level of moderately developed economies, while a social structure with a middle-income population like the majority should generally be developed by then the guideline mentioned.
And 10 years later, the province will be more successful in high-quality development, achieving common prosperity on the whole, according to the directive.
Promoting the common prosperity of all Chinese is a long-term and arduous task that cannot be fully implemented in a short time. Thus, the urgent need is to select certain areas with relatively sufficient conditions as a pilot, the National Development and Reform Commission (NDRC) said in response to reporters’ question on from China plans in Zhejiang.
from Zhejiang pioneer role
Construction of the demonstration area Zhejiang is conducive to promoting greater coordination between urban and rural income distribution, boosting industrial development and optimizing public services, according to a study by the Bank of China Research Institute.
As China is now the world’s second-largest economy, more attention needs to be paid to coordinating urban and rural income growth and economic growth in order to narrow the income gap and strengthen middle-income groups. Zhejiang The demonstration area will expand the income channels of urban and rural residents and explore ways to increase the incomes of low and middle income groups, as well as improve the wage distribution policy for skilled talent, according to the research. .
Zhejiang has a developed economy, a strong sense of reform and innovation, and enjoys the foundations and advantages for building demonstration areas. The guideline said Zhejiang should build a coordinated progress of modernization of industry and consumption, to better meet the diverse needs of people, which requires high-end, intelligent and market-oriented development in the industry, and promote vitality labor, technology, public and private capital and other factors, according to the research.
Why was Zhejiang selected?
Zhejiang province has achieved clear results in exploring and solving the problem of unbalanced and underdeveloped development; the fruits of the reforms there will provide experience for other parts of the country, from China said the state planner.
Zhejiang is a relatively wealthy province. The per capita disposable income of its residents was 52,400 yuan (about $ 8,199) in 2020, just behind Shanghai and Beijing.
Development is also well balanced there as rural residents make up half of its total population, but the income differential between urban and rural residents is 1.96, well below the national 2.56.
All parts of Zhejiang generally show a relatively strong sense of reform and innovation, offering various advanced reform experiences such as quick and easy one-stop-shop services. Despite all these services, the potential for further growth and prosperity remains great in the province, for example, in anti-monopoly management and preventing the disorderly expansion of capital.
According to the NDRC, the problem-oriented directive focuses on the weakest link hampering common prosperity and proposes key measures to reduce the gap between urban and rural regional development and the distribution of income between different groups.