But after my most recent visit to China I interpret things differently. This time there was a subtle change in the atmosphere. Nobody talks about the ten thousand yuan households any longer. The Party now believes this was going too far because so few households had been able to reach that standard. Quite a few of those who tried had gone bankrupt.
Individuals can still get loans to promote their businesses.
But now the emphasis is on building small co-operatives and collective enterprises. This is the way to common prosperity and to help the poor, the Party secretary in the village told me. The financial power of the State through grants and loans is going to collectively-owned organizations rather than to private individuals as before. So now the village has decided to join with a local factory to build a small steel-rolling mill. Already over 30 young villagers from the poorest families have found permanent jobs there and more are promised.