Japan Model May Beat China's 'Xitopia', Nikkei Asia Argues

Friction over trade and security between the US and China has now spilled into the realm of ideology such as democracy, freedom, and human rights. Countries around the world -- whether democratic or autocratic -- face economic and social divides, Japan included.

Photo Insert: The Chinese anti-poverty TV drama "Shanhaiqing," or "Minning Town," has recently gained popularity overseas, garnering millions of views on YouTube

Which camp wins the contest will be based on how well rival social systems deliver solutions while maintaining growth, Nikkei China bureau chief Yuri Momoi reported.

An agricultural village located deep in the interior of China offers a glimpse into China's gongtong fuyu, or common prosperity, an idea advocated by President Xi Jinping to eliminate the divides. About an hour's drive from Yinchuan, the capital of the Ningxia Hui Autonomous Region in the northwest corner of the country, lies a huge residential area, spread out in a neat grid.

The town was built on a flat, empty plain in 1997 for settlers from a mountain village 300 km away. At the time, the village was recognized as one of the poorest in the country and had been designated by the United Nations as "uninhabitable to humans."

Xi, then deputy party secretary of Fujian Province, led the project to build Mining Town. As part of the central government's program to fight poverty nationwide, Xi's team completely bypassed the provincial government in Ningxia to get the job done. With everything perfectly laid out like a theme park, Minning Town might aptly be referred to as Xitopia, as it seems to be the leader's vision of utopia from 25 years ago.

“Japan is the only country in the world that has succeeded in socialism," said a Chinese financial heavyweight half-jokingly some time ago. While achieving high economic growth, Japan has indeed created an egalitarian society where all Japanese were said to be middle class and who still have widespread access to education and health care.

In addition, the health insurance system in the country is seen as a miracle by other nations, with the number of hospital beds per population remaining one of the highest in the world.

In other words, Japan has already achieved something that Xi's utopia is still searching for. Hence, what Japan needs to do is to analyze why its own "common prosperity" has developed systemic fatigue and seems to have come to a standstill as economic growth slumps.

Although the idea of common prosperity is often criticized as a pipe dream by some of the president's detractors, the success of Mining Town may have boosted Xi's confidence that he is on the right track. US President Joe Biden was elected on pledges that are similar to Xi's goal of common prosperity, such as taxing the rich. But Biden has yet to make good on his campaign promises.

Obviously, it is ridiculous for China -- which shows a total lack of regard for human rights and freedom of speech and religion -- to talk about democracy. But can the US refute China's claims? In Japan, Prime Minister Fumio Kishida has proposed a "new capitalism." While the proposition has spurred debate on whether wealth distribution should precede economic growth, Kishida appears likely to opt for a middle road, emphasizing wealth distribution while simultaneously pursuing economic growth and innovation.

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