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Reinforcing the basic pillars of common prosperity

By Yang Yaqin | China Daily | Updated: 2026-04-03 08:46
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MA HUI/FOR CHINA DAILY

The outline of the 15th Five-Year Plan, approved in March by China's National People's Congress, puts forward seven major development goals. A core objective among them is to ensure that residents' income grows in step with economic growth and that labor remuneration rises in tandem with labor productivity, while further optimizing the income distribution structure and steadily expanding the middle-income group.

China's national income and consumption rose significantly during the 14th Five-Year Plan (2020-25) period. The new 15th Five-Year Plan (2026-30) period is a pivotal phase that links the long-range objectives for 2035 and the country's second centenary goal.

A key question is how we can further solidify the foundation for the 2035 goals and ensure shared prosperity by advancing high-quality, equitable access to basic public services and strengthening the modernization of the national governance system.

There is an urban-rural divide in both income and consumption. In 2025, urban income and consumption were 2.31 times and 1.77 times those of rural areas, respectively.

There are also regional disparities in income and consumption levels. In 2025, the top five regions with the highest per capita disposable income and consumption expenditure were all located in the eastern part of the country.

While social security is a key tool for narrowing income disparities, research shows that other basic public services also play a vital role in advancing shared prosperity.

Building on a relatively strong base of infrastructure and hardware, China is now well-positioned to increase its focus on human capital and software — an objective best achieved through the expanded provision of basic public services. This improved synergy between people and physical assets will be a crucial driver of the country's long-term development.

Common prosperity is an essential requirement of socialism. As a key driver of securing people's livelihoods, adjusting income distribution, and narrowing development gaps, the quality of and equitable access to basic public services directly determine both the level and sustainability of common prosperity.

First, realigning fiscal authority at the provincial level is key to expanding the scope of resource distribution.

While service delivery responsibilities are currently decentralized to the grassroots, the new imperative of achieving high-quality equitable access calls for resource coordination across broader regions.

During the 15th Five-Year Plan period, while the central government maintains its responsibilities, fiscal reforms should be intensified below the provincial level. This involves optimizing the distribution of fiscal powers and expenditure responsibilities for provincial governments and promoting a management model where the province oversees personnel, finances, and assets while counties handle implementation.

Under this framework, provincial governments are empowered to coordinate resources across the province with the explicit goal of achieving high-quality, equitable access to basic public services for all residents.

Second, we need to innovate resource allocation methods. The main challenge in delivering basic public services is bridging the gap between substantial funding needs and limited fiscal capacity. Leveraging social capital and market participation can help ease this pressure, safeguarding livelihoods while boosting supply-side vitality and long-term sustainability.

Beyond addressing market failures and reinforcing the fiscal safety net — especially in border, western, and rural areas — efforts should also focus on expanding the government procurement of services catalogue. Expanding coverage in education, elderly care, and childcare, while encouraging social organizations and businesses to take part, will be key to broadening service delivery.

Third, we need to harness digital and intelligent technologies to make resource allocation more efficient. A persistent challenge in delivering basic public services is matching supply with demand — ensuring that what the government provides aligns with what people actually want and need.

Digital tools can enable smarter, more responsive allocation. We should step up the use of big data and AI in fiscal governance and decision-making. This includes analyzing and simulating public service preferences to enable demand-driven delivery and greater efficiency.

At the same time, priority should be given to building a unified national platform for sharing public service data.

By closing gaps, reinforcing foundations, and unlocking new dynamism, we can accelerate progress toward high-quality equitable access to basic public services and ensure that the benefits of common prosperity are shared more equitably by all.

The author, a deputy to the 14th National People's Congress, serves as associate director of the Center for Advanced Study of Public Policy at Yunnan University of Finance and Economics.

The views don't necessarily reflect those of China Daily.

If you have a specific expertise, or would like to share your thought about our stories, then send us your writings at opinion@chinadaily.com.cn, and comment@chinadaily.com.cn.

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