On the eve of the “Two Sessions,” Xi Jinping’s leadership position is now secure as he embarks on a third term. But China faces severe headwinds in reviving the economy, boosting employment, and managing local government debt. In past crises, China’s leaders have tended to side with the market and with capital through supply-side subsidies, cuts in taxes and social insurance payments, and support for industry and local governments. But since 2021, Xi has repeatedly promoted a vision for the country’s future success that might run counter to those instincts: namely “common prosperity” a framework that emphasizes reducing inequality, balanced regional development, and a healthy “spiritual and moral culture.” After Xi began invoking “common prosperity” in 2021, a rash of new regulations and fines on private capital and technology companies suggested that rhetoric was translating quickly into action. But in the 18 months since, even as it continues to be invoked, common prosperity has seemed to play a much more minor role in policymaking.