Changing China: How Xi's 'common prosperity' may impact the world

China says its policies aimed at narrowing the widening wealth gap are precisely what it needs in this moment of its economic trajectory - but critics say it comes with even greater control of how business and society will be governed.

And while this "common prosperity" drive is squarely focused on people inside the country it has the potential to have huge repercussions for the rest of the world.

One of the most visible consequences of common prosperity has been the refocusing of corporate China's priorities to the domestic market.

Technology giant Alibaba, which in recent years has seen its global profile rise, has now committed $15.5bn (£11.4bn) to help promote common prosperity initiatives in China, and set up a dedicated task force, spearheaded by its boss Daniel Zhang.

The firm says it is a beneficiary of the country's economic progress, and that "if society is doing well and the economy is doing well, then Alibaba will do well".

Rival tech giant Tencent is pitching too. It has pledged $7.75bn to the cause.

China Inc. is keen to show it is playing ball with the Party's mandate - but when the push towards more companies publicly backing Xi Jinping's new vision first started, it did come as a "bit of a shock", one major Chinese company told me privately.

"But then we got quite used to the idea. It's not about robbing the rich. It's about restructuring society, and building up the middle class. And we are a consumption business at the end of the day - so it's good for us."

If common prosperity means an increased focus on the emerging Chinese middle class - then that could mean it is a boon for global businesses catering to these customers.

"We can see that the focus on young people getting jobs is good," Joerg Wuttke, president of the EU Chamber of Commerce in China, told me.

"If they feel they are part of social mobility in this country, which has been eroding, then it is good for us. Because when the middle class grows, then there is more opportunity."

However, businesses that are tied to the luxury sector may not do as well, Mr Wuttke warns.

"Chinese spending s for about 50% of luxury consumption globally - and if China's rich decide to buy less Swiss watches, Italian ties and European luxury cars then this industry will take a hit."

But while Mr Wuttke acknowledges China's economy does need critical reforms to increase the amount an average Chinese person earns, he says common prosperity may not be the most efficient way to get there.

Steven Lynch of the British Chamber of Commerce in China also says common prosperity is not a guarantee that the middle class will grow in the same way it has in the last forty years.

He likes to tell a story about how quickly the Chinese economy has expanded over the last few decades.

"Thirty years ago a Chinese family could have a bowl of dumplings once a month," he told me on the phone from Beijing. "Twenty years ago, perhaps they could have a bowl once a week. Ten years ago - that changed to everyday. Now: they can buy a car."

But so far Mr Lynch says, common prosperity hasn't resulted in anything concrete, besides the sorts of corporate social responsibility efforts that Alibaba and Tencent have adopted.

"There are also a lot of instant regulations sprung on a lot of sectors," he said of the recent crackdown on technology companies. "That causes uncertainty - and raises questions. If they are turning more inward - then do they really need the rest of the world":[]}