MNI POLICY: Wealth Distribution Key to Growth: China Scholar

China must improve the distribution of wealth to its population through measures such as increasing access to public services and deploying more fiscal stimulus to keep annual growth to around 5.5-6% over the next five years, Cai Fang, a vice president of the Chinese Academy of Social Sciences, said in a commentary. Writing on the dual circulation model touted by the government, Cai said that reducing the gap between China's rich and poor is the only way to increase domestic consumption and was the "central axis" of the dual circulation concept. Income growth must match that of the economy, rural migrant workers must be given more rights to services enjoyed by urban residents, and free education should be provided for children up to 12 years, Cai said. The current length is nine years in most parts of Chinese. Dual circulation will "certainly" be China's guiding principle of development over the next 10 years, Cai said, but said that as a new model it would take some years to evolve. China has more capability for fiscal stimulus given its higher rate of savings, Cai said. China should also help individuals in need due to the pandemic, and not just small businesses, he said. China's exports are likely to improve from the short-term impact of the pandemic, but they are unlikely to fully regain market share given the "decoupling" intentions of some countries, Cai said.