Leadership reshuffle will steer China's path

Subject Leadership politics in China. Significance Xi Jinping seems to have monopolised political power, but he must still heed the voices of other major Party factions and Party elders. In October or November next year will come the next five-yearly Party Congress, the most important event on China's political calendar, which will endorse personnel changes in the top leadership. Manoeuvring for positions has already begun. Impacts Xi's proteges are not generally reform-oriented, so if they predominate, this will weigh against economic liberalisation. Promotion of Wang Yang to the Politburo Standing Committee would indicate openness to both power-sharing and reform. Appointment of Zhou Qiang to the Politburo could mean a subtler approach to legal affairs or anti-corruption. Promotion of aerospace expert Zhang Qingwei would place priority on industrial policy.

Subject China's 19th Communist Party Congress. Significance Preparations are underway for the 19th Congress of the Chinese Communist Party, which is likely to be scheduled for October or November. Much political groundwork has been laid in support of President Xi Jinping and for progress on his vision for China. The Congress will set a direction towards the 100th anniversary in 2021 of the founding of the Party and the handover of power to a sixth generation of leaders shortly after. Impacts Beijing will probably be cautious in its foreign policy during the months running up to the Congress. Consolidating his position at the Congress should increase Xi's ability to press his economically reformist, politically illiberal agenda. Bar any serious reversal, Xi will be in a position to dominate Chinese politics after he retires from formal offices.


Subject The upcoming Chinese Communist Party Congress. Significance President Xi Jinping may be about to upend China’s post-Mao succession arrangements at the 19th Congress of the Chinese Communist Party, scheduled to open on October 18. Xi has engineered a 'quiet revolution' that has introduced new risks into China's domestic and foreign policies. To continue his unfinished revolution and safeguard its legacy, Xi has the incentive and the political momentum to seek a third term as the head of the Party. Impacts Most of Xi's ambitious projects are works in progress, and success is far from certain. Xi’s leadership could be called into question should the economy run into serious problems, related to corporate debt, for instance. Failure of One Belt One Road or a serious breakdown in relations with Washington could cause problems for Xi domestically.


Subject The purge and replacement of erstwhile presidential contender Sun Zhengcai. Significance Politburo member Sun Zhengcai, once seen as a potential successor to Xi Jinping as president, has been removed from his post as Party chief of Chongqing and placed under investigation. Chen Min'er, a Xi loyalist, replaces him. Impacts The top leadership will probably manage to present a relatively united front to the public ahead of the Party Congress. In the much longer term, the corrosion of collective leadership could reduce political stability, which may damage investor confidence. An administration composed of officials whose thinking matches that of the core leader is less likely to generate effective policy.


Significance His name has been written into the Party charter, and he has installed two allies on the Politburo Standing Committee to oversee critical portfolios. Impacts Xi's scepticism of markets and passive resistance by alienated mid-to-lower-level bureaucrats make dramatic economic policy shifts unlikely. The Standing Committee members do not owe their careers to Xi's patronage and will be able to restrain him from arbitrary rule. The wider Politburo includes a host of rapidly promoted Xi loyalists, which will help the durability of Xi's influence post-2022.


Subject China's climate change policies. Significance UN Secretary-General Antonio Guterres last month described China as "strongly committed to the leadership in climate action". President Xi Jinping asserted at the 19th Party Congress in October that China is in the “driving seat” when it comes to “international co-operation” on climate change. However, China's action on climate change so far has been driven primarily by domestic concerns rather than international pressure or concerns about the global effects of climate change. Impacts China could come to dominate clean energy industries worldwide, particularly renewables, electric mobility and electrification technologies. Efforts to combat air pollution will further restrict the supply of commodities, particularly steel, coal and aluminium. Anti-pollution efforts will be particularly energetic where they also reduce capacity in energy-intensive sectors with overcapacity.


2017 ◽  
Vol 09 (01) ◽  
pp. 50-62
Author(s):  
Gang CHEN

Chinese President Xi Jinping has been consolidating his power over local affairs and preparing for the next round of power transfer at the 19th Party Congress in 2017. The Congress is likely to effect a far-reaching change in the composition of the central leadership. Xi Jinping and Li Keqiang are expected to retain their seats in the Politburo Standing Committee, while Wang Qishan may stay on due to his role in the anti-corruption campaign.


Subject Profile of Lu Wei. Significance Lu Wei, the chief architect of the Xi Jinping government's internet policy, has stepped down from his post as head of the Cyberspace Administration of China. However, he retains a concurrent postion as vice-director of the Communist Party's central propaganda department and may have a further role to play at the top of Chinese politics. Impacts The cyberspace administration's focus will turn from expansion to consolidation. Although Lu's next role is not yet announced, promotion is more likely than demotion. Lu may join the Politburo Standing Committee in 2022. Lu's trajectory will test whether established conventions of Chinese politics still hold under President Xi Jinping.


Subject Xi Jinping's second term. Significance The 'new era' announced by President Xi Jinping at the 19th Party Congress in October will get fully underway when the election of a new National People's Congress and associated appointments next March complete the five-yearly handover to a new cohort of national leaders. In important ways, however, it has already begun. Impacts Compliance costs will rise for enterprises, particularly foreign ones. The private sector will rely more than previously on patron-client relations rather than competitiveness. Government efforts to promote innovation will focus on technology.


Subject The negative consequences of policy centralisation in China. Significance Policy experimentation at the local level has played a key role in China’s economic reforms and the Communist Party’s regime durability. However, it has decreased significantly under President Xi Jinping, due largely to a recentralisation of political power and the ongoing anti-corruption campaign. Impacts Individual policymakers will still implement policies tailored to the local environment and potentially contradictory to central directives. Local officials will be inclined to conceal innovative policies and solutions from the central government. Despite centralisation, foreign organisations are most likely to succeed in China if they engage at the local level.


Asian Survey ◽  
2017 ◽  
Vol 57 (1) ◽  
pp. 65-78
Author(s):  
Murray Scot Tanner

As the next Party Congress loomed in 2017, China’s top leaders in 2016 endorsed President Xi Jinping as the leadership “core,” a move that may allow his further consolidation of political power. The economy grew at a targeted 6.7%. Beijing challenged the new Taiwan administration, and sought to consolidate its muscle-flexing in the South China Sea. The likely direction of US relations under Donald Trump remained uncertain.


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