2022 Year in Review

Common Prosperity
The concept of ‘Common Prosperity’ is a confident, idealistic, but ultimately
vague expression that will guide how China transitions, defining itself from
‘big’ to ‘powerful’ as a modern socialist country. This will be done by
regulating income distribution and wealth accumulation while guaranteeing
employment, and improving the social security and housing systems. This
initiative epitomises both the rhetoric used to define CPC Congress goals and
their highly ambitious plans to lead the country out of its current economic
situation and difficulties.
Green transformation
China plans to accelerate green transformation, and promote green and lowcarbon
industries, controlling pollutant emissions and regulating important
ecosystems. Underpinning their approach is the 30/60 strategy to align with
global sustainability goals: peak carbon by 2030 and neutrality by 2060. To
achieve this, concrete measures were issued in carbon dioxide emissions,
energy consumption, industrial capacities (such as controlling the expansion
of coal industries), campaign support in high-polluting industries to reduce
production capacity, expanding the use of renewable energy such as
hydrogen, gas, bio-liquid fuels, and increased financial support to achieve
these goals.
The Dual Circulation Economy
Xi emphasised again the concept of the Dual Circulation Economy, which was
first referenced in 2020. The concept involves two cycles or markets,
domestic and international. The domestic economic cycle refers to its
domestic activities while the international cycle refers to its economic links
with the outside world. China wants the domestic cycle to play a leading role
and create a self-sufficient economy, whereas the international cycle would
act as an extension and supplement to the domestic market. The concept is
to mitigate the potential ‘decoupling’ from international markets, a very real
possibility if the US continues to ‘weaponise’ economic interdependence -
through restricting technological development for companies that operate in
China via the CHIPS and Science Act 2022 -
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