Economics
China Looks at Cutting Inequality in Order to Boost the Economy
- Xi calls for boosting the share of GDP that goes to workers
- Economists expect a more redistributive taxation system
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The Chinese Communist Party’s new pledge to fix the “demand side” of the economy has prompted expectations the leadership will implement more egalitarian policies to stimulate consumer spending.
The Party’s top leaders used the phrase “demand-side reform” for the first time this month, in a departure from its past focus on “supply-side” changes which involve upgrading industry and cutting capacity in bloated sectors.