Common Prosperity is a Chinese targeted policy which has been laid out since a few decades ago.
Common Prosperity can be interpreted as “prosperity for all”.
It is not intended to cause long-term damage to private sectors, but instead to redistribute wealth among all citizens to achieve ‘growth with equity’.
Chinese-characterised approach to tackle rising wealth inequality.
It is a Chinese-characterised approach to tackle rising wealth inequality. This policy is the same strand of Deng Xiaoping’s common prosperity, that is in order to achieve common prosperity, some people need to get rich first to unleash entrepreneurial spirit. China has successfully lifted more than 700 million citizens out of poverty.
Promote innovation and drive middle-class consumption.
It is to promote innovation and drive middle-class consumption in long-term. Investors should be agile and embrace the changes as China transitions through the structure changes to reduce wide income equality gap.
Chinese tech companies are not alone in facing the regulatory crackdown, as global authorities step up the measures to regulate the internet space.
Global authorities share similar concerns on big tech with respect to data privacy and anti-trust.
The stringent regulations will rectify these structural issues, whilst allowing the tech players to regain public trust and promote sustainable growth within the industry.
Poor policy communication remains one of the key weaknesses of the Chinese government.
Moving forward, Chinese government should create a more consistent, transparent, and predicable political environment.
Ample Opportunities within tech sector.
Current crackdown is targeting specifically on the consumer tech space, and market may have over-reacted with this policy mishap. There are still ample opportunities to be found within tech sub-sector such as semiconductors, medical tech, and artificial intelligence.
Southeast Asia countries as one of the beneficiaries against the backdrop of heightening geopolitical tension between China and US.
As Asian cohorts, we share similar culture and values.
Our similar culture and values make business integration between Southeast Asia and China more achievable in times of uncertainty.
Southeast Asia will benefit from increasing regional flows.
Southeast Asia will benefit from increasing regional flows moving forward. More capital flow and foreign direct investments (FDI) from China will be expected to pour into the region as China starts to nearshore its supply chains to reduce concentration risk.
Fostering trade and exchange of ideas is essential for global coordination and cooperation.
The emergence and increasing popularity of super-app is a result of synergy created by tech transfer globally.