China's Xi Jinping defends 'common prosperity' crackdowns

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Chinese president Xi Jinping has made a rare defence of his "common prosperity" policy, which has seen a number of business raids.

The World Economic Forum's annual meeting of government and corporate leaders was where his comments came from.

China says the policy is meant to narrow the wealth gap, which could threaten the Communist Party's rule.

Technology, education and entertainment firms have been hit by the changes.

Mr Xi told the delegates that the common prosperity they desire is not egalitarianism.

We will make the pie bigger and then divide it properly. Everyone will get a fair share from development and development gains will benefit everyone in a more equitable way as the tide rises.

The common prosperity policies put in place by the Chinese government are seen by some as a way to give customers and workers more of a say in how firms operate and distribute their earnings, instead of reining in the billionaire owners of some of China's biggest companies.

Billions of dollars have been wiped off the value of some of China's biggest companies as Beijing imposed tough new regulations on them, which has rattled international investors.

During his address, Mr Xi said that the country is still open to investment from overseas.

"All types of capital are welcome to operate in China, in compliance with laws and regulations, and play a positive role for the development of a country," he said.

The WEF annual meeting is being held online because of the swine flu.

As he is expected to be appointed for a third term in office later this year, Mr Xi made comments.

That would make him an equal to Mao and Deng Xiaoping, who oversaw major reforms to the country's economy.

The Beijing Winter Olympics Games are due to start next month, at a time when China is facing international criticism on a number of fronts, including for encroaching on democratic freedoms in Hong Kong, its treatment of the Uyghur minority in Xinjiang and its stance on Taiwan.

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Why does China's economy matter to you?

There is a president named Xi Jinping.
China.
China's economy.
It is at the annual meeting of the World Economic Forum in Davos.