Luo Zhiheng

Luo Zhiheng

Deputy Dean and Chief Macroeconomic Analyst, Yuekai Securities Research Institute

Dr Luo Zhiheng is the deputy dean and chief macroeconomic analyst of Yuekai Securities Research Institute. He obtained his PhD in finance at the Chinese Academy of Fiscal Sciences and is also a certified public accountant. He co-authored the book Quanqiu Maoyi Moca yu Daguo Xingshuai (《全球贸易摩擦与大国兴衰》, Global Trade Frictions and the Rise and Fall of Great Powers) with Ren Zeping. His research interests are macroeconomics as well as fiscal theory and policy.   

Residents walk through Huanggang village in Shenzhen, China, on 11 October 2021. (Qilai Shen/Bloomberg)

China needs to raise personal income to achieve common prosperity

Analyst Luo Zhiheng compares China's distribution of national income with 20 major economies and concludes that among other things, there is a need to address a lower-than-average share of personal income in China, in order to achieve common prosperity. The Chinese government can work towards the goal of fostering an olive-shaped income distribution pattern by adjusting the tax structure, providing more investment options to its people, and developing its social security network.
Pedestrians wearing protective masks walk down Nanjing East Road in Shanghai, China on 14 August 2021. (Qilai Shen/Bloomberg)

Why China is embarking on the journey of 'common prosperity'

China has set itself the goal of achieving "common prosperity" in the coming years, after realising its goal of "building a moderately prosperous society in all respects". Chinese academic Luo Zhiheng describes this ideal society which is the opposite of a society plagued by a serious wealth gap — people should look forward to improving their quality of life and not worry about their basic needs; social safety nets should also provide basic livelihood protection for the disadvantaged groups. He outlines how China can realise this ideal by harnessing the strength of all who are able and who have "gotten rich first" during the reform and opening up process.