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China Election Draws Near
Pinnacle Digest writes: China's Communist Party is preparing to transfer power next month and the world should be watching.
China celebrated another milestone achievement last week, as Mo Yan became the first Chinese citizen to win a Nobel Prize for literature.
The 18th National Congress of the Communist Party of China is set to convene next month. The new Nobel laureate, Mo Yan, is of the same generation as the new leaders set to take over the Politburo Standing Committee. This is of interest to Holmes and his team as that mindset will lead China deeper into the 21st Century.
The CLSA explained that, "This group of men (and one female contender) are old enough to remember the suffering of the Cultural Revolution, but also young enough to fully experience how China has grown through Deng [Xiaoping]’s opening of the economy to market forces."
William H. Overholt in The Washington Quarterly, commented that, "They’ve seen vast political reforms take place, transforming China “from a country ruled by the contradictory personal whims of Mao to one ruled through institutions and rules."
Holmes' main interest is whether or not, after three decades of tremendous expansion, this new generation of leaders can maneuver the country into the next decade? Can they toe the line between maintaining the stability created during the previous Hu-Wen administration while continuing the political and economic reform necessary to adjust to the country’s slowing growth?
These are questions the new leaders will be forced to answer.
China’s pyramid of power is headed by the Politburo Standing Committee (PSC), which will likely have seven to nine new members led by Vice President Xi Jinping and Vice Premier Li Keqiang, selected by a vote of the Central Committee of the Communist Party of China.
The CLSA also explains that unlike prior committee members, who were mostly engineers, the new PSC members have varying liberal arts backgrounds, including history, law and economics, which may help to “address social concerns after decades of focusing mostly on growth.”
Although many in the West know little about China’s incoming President, Xi Jinping, he is a princeling who was born into privilege as the son of Xi Zhongxun. He was among the first generation of Chinese leadership and “one of the most liberal leaders under Deng.” His father’s claim to fame was in creating a special economic zone in Shenzhen, which transformed the area from a small village to one of the fastest-growing cities in the world and one of the busiest container ports in China.
Holmes shares that a nearly 500-page document by the World Bank and China’s Development Research Center of the State Council may give “promising insight into China’s future policy,” says CLSA. The comprehensive report titled China 2030 identifies a long-term strategy for Chinese policymakers. The report says that “after more than 30 years of rapid growth, China has reached another turning point in its development path when a second strategic, and no less fundamental, shift is called for.”
Holmes outlines the key areas needed to be addressed for China to succeed in its next long-term strategy.
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