Since the 18th CPC National Congress, the CPC Central Committee has taken effective measures to ensure and improve people's livelihood, won the battle against poverty, and completed the building of a moderately prosperous society in all respects, creating favorable conditions for promoting common prosperity. In January this year, General Secretary Xi Jinping pointed out at the 27th group study session of the Political Bureau of the CPC Central Committee that in entering a new stage of development and implementing the new development concept in a complete, accurate and comprehensive way, we must pay more attention to common prosperity. Speaking at the 10th meeting of the Financial and Economic Commission of the CPC Central Committee on August 17, Xi further stressed that common prosperity is an essential requirement of socialism and an important feature of Chinese-style modernization. We should adhere to the people-centered development philosophy and promote common prosperity through high-quality development.

Adjust distribution relations starting from production

Common prosperity is both a distribution problem and a production problem. Distribution activities are closely linked with production activities, and wealth distribution is essentially determined by wealth production. Marx revealed the relationship between production and distribution in Das Kapital. "The historical nature of these distribution relations is the historical nature of production relations, and distribution relations only represent one aspect of production relations". Adhering to the basic principles of Marxist political economy requires us to study common prosperity from the perspective of production mode and production relations.

Since the reform and opening up, we have seized the precious opportunity of international industrial transfer, made full use of the comparative advantage of relatively cheap labor force, occupied the international market with an export-oriented strategy, and achieved remarkable economic growth. But at the same time of rapid economic growth, because generally concentrated in the low value-added manufacturing link, a large number of companies are locked in low-end value chain, the income share of the laborer in production activities is relatively low, resulting in a period of residents' income growth rate is lower than the rate of economic growth, labor income distribution gap is widening. At the same time, an exodus of rural residents to coastal areas and large and medium-sized cities has created overcapacity in labor-intensive industries, forcing capital into real estate and financial markets and significantly pushing up income levels in those sectors. To achieve common prosperity in high-quality economic development, we must solve the above problems and change the traditional growth model to a high-level growth model.

Promote common prosperity through high-quality economic development

As socialism with Chinese characteristics has entered a new era, the principal contradiction facing Chinese society has evolved into one between unbalanced and inadequate development and the people's ever-growing needs for a better life. Common prosperity is an important part of the people's need for a better life, and the imbalance of income distribution is a prominent manifestation of unbalanced and inadequate development. To fundamentally solve the principal social contradiction, we must adjust the relations of production, further raise the level of productive forces through high-quality economic development and achieve common prosperity.

From the micro level, after the production process, to participate in the production of various micro main body to produce results for the first time distribution, production data ownership is on the basis of initial distribution, therefore, must adhere to it is "two", insist on the public ownership as the main body, a variety of ownership economy common development, in promoting the micro main body of market dynamics, at the same time pay more attention to fair distribution. On the one hand, from the perspective of value production and distribution according to work, living labor is the only source of value, but there are differences between complex labor and simple labor in value creation. To strike a balance between complex and simple labor, we need to improve the mechanism for wage formation and increase, and increase the share of labor remuneration in primary distribution. At the same time, we need to encourage workers to become more educated, encourage enterprises to increase r&d investment, and increase the added value of products and market competitiveness, so as to break out of the global value chain. We will continue to raise the labor income of skilled workers, researchers and innovators. , on the other hand, from the perspective of the allocation of factor of production and of use value, labor, capital, the owner of the land, technology and other factors of production in the use value all play a certain role in the production process, which requires owners overall consideration of various factors in the primary distribution of interests, stimulate the microscopic main body enthusiasm, initiative to participate in wealth creation. In the context of the new scientific and technological revolution, we need to increase the proportion of owners of new factors such as technology, data and information, and strengthen the protection of intellectual property rights.

From the meso level, labor force and means of production are combined to carry out production activities between industries and regions, thus determining the industrial structure and regional structure of distribution. To achieve common prosperity, we need to narrow the development gap between industries and regions and make development more coordinated, balanced and inclusive. From the perspective of the adjustment mechanism of the flow of factors of production, the market plays a decisive role in resource allocation, and the owners of factors of production make decisions according to indicators such as wages, costs and profit margins. On the one hand, it gives full play to the advantages of market mechanism, but inevitably leads to the development gap between industries and regions. Therefore, the government must better play its role on the basis of market allocation of resources, guide the orderly flow of labor and means of production between industries and regions, so that all factors of production can get relatively fair returns, and provide a realistic path for common prosperity. First, we should enhance the coordination, balance and inclusiveness of industry development and properly handle the three relationships. First, we need to strike a balance between technology-intensive and labor-intensive industries. We will not only promote industrial transformation and upgrading and encourage micro-entities to participate in the distribution of industries with intellectual property rights, data and information, but also pay attention to ensuring employment for workers and effectively increasing the share of wages in income. Second, we need to strike a balance between the development of the real economy and the virtual economy, give more preferential policy support to the development and expansion of the real economy, and encourage and support labor and means of production to enter the real economy in a more flexible way. We will strengthen oversight over blind investment in the financial and real estate sectors, and promote coordinated development of the financial and real estate sectors with the real economy. Third, we need to strike a balance between market-based industries and public welfare undertakings. We will adjust and optimize the structure of government expenditures, improve the public finance system, and invest more government funds in public services and infrastructure development. We will give full play to the leading role of the public sector in emergency rescue and disaster relief, pin-up assistance, and social security. We will encourage people to participate in the third distribution system through volunteer service and voluntary labor, encourage the non-public sector to shoulder social responsibilities, and actively develop and expand public welfare programs such as donation and charity. Second, we need to make regional development more coordinated, balanced and inclusive. At present, China still has various forms of regional development differences, such as east and west, south and north, coastal-inland, plain and mountainous areas. To this end, we need to advance major strategies for coordinated regional development, such as the coordinated development of the Beijing-Tianjin-Hebei region, the integration of the Yangtze River Delta, the Yangtze Economic Belt, the Guangdong-Hong Kong-Macao Greater Bay Area, the Yellow River Basin ecological protection and high-quality development demonstration zone, and the all-round revitalization of northeast China. We should make comprehensive use of fiscal transfer payments at the central and local levels, parallel matching assistance at various administrative levels, and industrial coordination in metropolitan areas and city clusters to guide the smooth flow of labor and means of production among different regions, so that owners of various factors of production can obtain relatively reasonable remuneration in different regions. In addition, we will promote the flow of labor and means of production between urban and rural areas, reasonably encourage workers to return to their hometowns to start businesses, standardize and guide capital to go to the countryside, encourage science and technology to develop agriculture, and promote the sustained increase of farmers' incomes. We will accelerate the formation of a new type of urban-rural relationship in which industry and agriculture reinforce each other and urban and rural areas complement each other, achieve integrated development between urban and rural areas, and promote common prosperity between them.

At the macro level, we need to promote high-quality economic development at a higher level and provide an institutional guarantee for common prosperity. First, we need to strengthen centralized, unified leadership of the Party. Under the leadership of the CPC, we will deepen supply-side structural reform, strengthen demand-side management, and meet people's aspirations for a better life with higher-quality products and services. 2 it is to take advantage of new type of the sports system, build the macroeconomic regulation and control system with distinctive Chinese characteristics, the implementation of the common prosperity of monetary policy and fiscal policy, deepening rural revitalization, common prosperity demonstration area construction and other major economic and social development strategies, build primary distribution and redistribution, distribution of three coordinate form a complete set of basic system arrangement.

Source: State-owned Assets And Administration Commission of The State Council