Abstract:Common prosperity is an important feature of Chinese modernization. The expansion of the middle-income group is an important part of promoting common prosperity. Macro- and micro-level data were used to measure changes in China’s middle-income group and level of common prosperity. From 2010 to 2022, sustained growth is observed in both the size and share of the middle-income group. Continuous improvement is also observed in the income distribution structure. An overall upward trend is identified in the level of common prosperity. However, the middle-income group is not yet the dominant group. Urban-rural structural disparities, risks of downward mobility, and regional imbalances are still present. Therefore, further efforts are still required to steadily expand the middle-income group. The momentum for wealth creation can be strengthened through such expansion. The income foundation of common prosperity can be consolidated. Human capital support can be reinforced. The social foundation of common prosperity can be stabilized. Consequently, the gains of modernization can be shared more broadly and sustainably by all people. Three main models are identified through international comparison. They are the public-service and coordinated-distribution-led model, the market-driven and employment-and-tax-support model, and the developmental-state coordination-led model. Each model is characterized by distinctive institutional arrangements and operating conditions. The operation of these models is constrained by fiscal capacity, market conditions, government coordination capacity, and the stage of development. In accordance with China’s conditions, coordinated efforts should be made in several areas. The coverage of the middle-income group should be broadened. Residents’ capacity for sustained income growth should be strengthened. Human capital and development capabilities should be enhanced. Household welfare and risk protection systems should be improved. More residents should be enabled to enter and remain in the middle-income range. Solid progress toward common prosperity should be promoted through the sustained expansion of the middle-income group.