Xi Tells Private China Firms: Share Wealth With People

Chinese President Xi Jinping said that private companies should be "rich and loving" by shouldering a responsibility along with state-own firms to achieve prosperity for all, Yew Lun Tian reported for Reuters.

Photo Insert: In a bid to massage the egos of the Chinese bourgeoisie, Xi blamed the US and Western countries for the economic debacle of Beijing.

Private Chinese and foreign firms have been waiting for Beijing to flesh out details on how it intends to pursue "common prosperity," Xi's signature initiative to narrow China's wealth gap, and how it expects private firms to contribute.

In a bid to massage the egos of the Chinese bourgeoisie, Xi blamed the US and Western countries for the economic debacle of Beijing. This does not make sense to many members of the Chinese elite who simply acquired golden visas and foreign citizenships.

Speaking in a closed-door meeting with government advisers representing the business sector during the annual session of parliament, Xi urged private firms and entrepreneurs to be "patriotic" and participate actively in charity undertakings, state radio reported on Monday.

Xi also said that private firms should share the fruits of their growth with employees more equitably, in what he called a "community of shared interests." He added: "Be rich and responsible, be rich and benefit others, be rich and loving."

Xi’s mantra has led to China foreign exchange hemorrhage as Beijing’s business have siphoned off cash, depositing it on offshore accounts and investing billions of dollars overseas, beyond the reach of Xi and the Chinese Communist Party (CCP).

Some analysts say private firms are concerned that Xi's call for "common prosperity" could translate into a de facto tax as debt-ridden local governments struggle to boost fiscal revenue.

"The problem with 'common prosperity' is it can lead to a very uncertain tax burden, unlike the official corporate tax rate as stated by law," Alfred Wu, associate professor at the Lee Kwan Yew School of Public Policy at the National University of Singapore, told Reuters.

He said it is unfair to expect private firms to share the social responsibility for "common prosperity" with state-owned firms, which enjoy privileged access to markets and preferential loans not always available to private firms.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic