Abstract: Common prosperity is the value pursuit of socialism, it contains rich scientific connotations. A correct understanding is required to face China’s current status of widening gap between the rich and the poor. As for the problem of how to realize the common prosperity, to narrow the gap between the rich and the poor, and to prevent polarization, one of the most important solutions is to strengthen the input and enhance the innovation at both the institutional and policy levels, give full play to the role of institution and policy in narrowing the gap between the rich and the poor, and establish the mechanism to realize fair and rational income distribution.

Key words: common prosperity; essential connotation; gap between the rich and the poor; implementation mechanism