sign in sign up
<<
Home , Wang Qishan, Zhao Hongzhu

LI & FUNG RESEARCH CENTRE

China Distribution & Trading Issue 106 December 2012

th IN THIS ISSUE : The 18 National Congress of the Communist Party of Part One: 2 Key takeaways of th the report delivered by The 18 National Congress of the Communist Party of China (CPC) was held on at the 18th National 8-14 November 2012 in . During the Party Congress, Hu Jintao, the then Congress of the CPC General Secretary of the CPC, delivered a report to the Congress on behalf of the 17th CPC Central Committee, setting the tone for the long term development 1 Part Two: 6 of the country. (See Part One for the key takeaways of Hu’s report.) The Party Short term economic tasks Congress endorsed a number of amendments to the Party Constitution. One of set by the State Council the major amendments is to incorporate the ‘Scientific Outlook on Development’ into the CPC guiding ideology, along with Marxism-Leninism, the Mao Zedong Part Three: 8 Thought, the Theory and Jiang Zemin’s ‘Three Represents’. Reshuffling of the Party’s top leadership It is noteworthy that the transition of the CPC’s top leadership took place. The Party Congress elected the Party’s 18th Central Committee and the members of Exhibit 1: Organization 9 the Central Commission for Discipline Inspection. On 15 November, the second structure of the CPC day after the closing of the Party Congress, the newly elected CPC Central Central Leadership Committee held its First Plenary Session. The CPC leaders for the next five years were elected in the Plenary Session, including the General Secretary, seven Appendix 1: Profiles of 10 members of the Standing Committee of the Political Bureau, and twenty five the members of the members of the Political Bureau. succeeded Hu Jintao as the General Standing Committee of Secretary of the Party, and is widely expected to stay in power for the next ten the Political Bureau years. More details about the reshuffling of the Party’s top leadership will be covered in Part Three of the report. Appendix 2: Some 18 facts about the CPC Another Highlight: On 17 October, Premier presided at a State and the National Party Council meeting, setting the short term economic tasks. Highlights of the major Congress tasks can be found in Part Two of the report.

Li & Fung Research Centre 10/F, LiFung Tower, 888 Cheung Sha Wan Road, Hong Kong Tel : (852) 2300 2470 Fax : (852) 2635 1598 E-mail: [email protected] 1 Chinese version: http://cpc.people.com.cn/n/2012/1118/c64094-19612151.html http://www.funggroup.com English version: http://news.xinhuanet.com/english/special/18cpcnc/2012-11/17/ c_131981259.htm

Li & Fung Research Centre Member of the Fung Group 1 China Distribution & Trading Issue 106 December 2012

Part One: Key takeaways of the report delivered by Hu Jintao at the 18th National Congress of the CPC 1. To complete the building of a ‘moderately prosperous’ society by 2020

– The Party targets to complete the building of a ‘moderately prosperous’ (known as ‘xiaokang’ in Chinese) society by 2020.

– Major goals include: i. To double China’s GDP and per capita income of both urban and rural households between 2010 and 2020. (See below for more discussion.)

ii. To narrow the income gap.

iii. All Chinese citizens to have equal access to basic public services by 2020.

iv. The social security system to cover all Chinese citizens.

v. The energy consumption per unit of GDP and the carbon dioxide emissions per unit of GDP to decrease substantially.

vi. The emissions of major pollutants to fall significantly.

vii. To raise the forest coverage rate.

viii. The cultural industry to become the pillar industry of the national economy.

2. GDP target

– The Party targets at doubling China’s GDP between 2010 and 2020.2 This implies that the target for China’s real GDP growth is around 7% per annum throughout 2011-2020. (China’s real GDP growth registered 9.3% yoy in 2011.)

– To develop the economy, the country will focus on pushing forward the new industrialization, informatization, urbanization and agricultural modernization.

3. Target for household income

– The Party also targets at doubling China’s per capita income of both urban and rural households between 2010 and 2020.3 This is the first time that the Party sets a target for household income, showing the Party’s commitment to share the fruits of economic growth with the ordinary people.

– The Party aims at raising the share of household income in the national income and the share of labour income in the initial income distribution. The country will push forward the reform of income distribution system.

2 According to the National Bureau of Statistics (NBS), in 2000, China’s nominal GDP was 40.2 trillion yuan. 3 According to the NBS, in 2000, the per capita disposable income of urban households was 19,109.4 yuan, and the per capita net income of rural households was 5,919.0 yuan.

Li & Fung Research Centre Member of the Fung Group 2 China Distribution & Trading Issue 106 December 2012

i. The reform of wage-setting systems for enterprises, government and related organizations will be continued. The implementation of the collective bargaining system will be further promoted.

ii. More emphases will be placed on raising income of low-income workers, regulating excessive income and prohibiting illegal income.

iii. The country will boost households’ income from assets.

4. China will rely more on consumption as the driver of economic growth

– China will rely more on consumption as the driver of economic growth.

– The country will strive to establish an effective mechanism for expanding consumption demand in the long term, and expand the domestic market. (Remark: The report does not give more details of the mechanism. We believe that the mechanism is associated with strengthening spending power, improving consumption environment and nurturing consumption hotspots.)

– The country will further push forward urbanization, continue the reform of the income distribution system, as well as improve public services and social welfare, which bode well for China’s consumption.

5. Public services and social welfare

– It is targeted that all Chinese citizens will have equal access to basic public services by 2020.

– Looking ahead, the country will reform the social insurance system for employees working for enterprises, government and related organizations, and integrate the basic old-age insurance programme with the basic medical insurance system in coming future.

– To offer convenient medical services to Chinese people at low fees, the country will push through the reforms in areas such as medical insurance, medical services, drug supply and public hospitals.

– The country will construct more public housing and improve the allocation system of public housing.

– The country will adopt a proactive employment policy, encourage people to start their own business and strengthen labour protection.

– The country will strive to promote the universal implementation of nine-year compulsory education. More educational resources will be allocated to rural, remote, poor and ethnic minority areas.

Li & Fung Research Centre Member of the Fung Group 3 China Distribution & Trading Issue 106 December 2012

6. Urbanization and reform of the household registration system

– The country will continue to place heavy emphasis on pushing forward urbanization.

– In this regard, the country will focus on promoting the development of small- and medium-sized cities and towns.

– China will also accelerate the reform of the household registration (known as ‘’ in Chinese) system, and will register migrant workers as urban residents in an orderly manner.

– The country will also strive to provide basic public services to all residents in the urban areas.4 For instance, it is targeted that children of migrant workers will have equal access to education in the cities where they reside in.

7. Agriculture, rural areas and rural households

– To boost agricultural production capacity, China will accelerate the modernization of agriculture.

– Special emphasis will be put on infrastructure construction and the development of social undertakings in the rural areas.

– The Party vows to maintain fast growth of farmers’ income.

– To push forward reforms of the land expropriation system. Rural households’ share of gain from land appreciation will be raised.

8. Reform of the economic system

– The report states that the economic system reform holds the key to the transformation of the pattern of economic development in China, and the underlying issue is to properly manage the relationship between the government and the market.

– The country will continue the state-owned enterprises (SOEs) reform. The SOEs are encouraged to increase investment in major industries that are of vital importance to the economy and national security.

– Meanwhile, the country will also support the development of the non-state economy. Entities of all types of ownership will have equal access to factors of production.

– The country will accelerate the reform of the fiscal and taxation system, ensuring that both central and local governments will have adequate financial resources to fulfill their respective responsibilities.

– The country will continue to push forward reforms in the financial system. Marketization reform of the interest rate and the exchange rate will be continued. Moreover, the country will gradually promote capital account convertibility of the RMB. 4 Currently, residents with urban household registration are entitled to enjoy better social protection than those without urban household registration.

Li & Fung Research Centre Member of the Fung Group 4 China Distribution & Trading Issue 106 December 2012

9. An innovation-driven strategy to develop the economy

– An innovation-driven strategy will be adopted to develop the economy. It is targeted that the contribution of technological progress to economic growth will increase substantially by 2020.

– The country will foster the development of strategic emerging industries, advanced manufacturing industry and tertiary industry, especially the modern service sectors, as well as accelerate the upgrade of traditional industries.

10. To enhance China’s capacity for sustainable development

– The Party vows to give high priority to promoting ‘ecological progress’. (Remark: One of the amendments to the Party Constitution, which was adopted by the Congress on 14 November, is to include ‘ecological progress’.)

– The Party vows to ‘build a beautiful country and leave a beautiful homeland with green fields, clean water and blue sky to the future generations’.

– The country will strive to improve land development, conserve resources, protect the environment and introduce systems that enhance sustainability.

– The country will push forward reforms of the resources pricing mechanisms and the resources tax.

– The country will actively carry out trials of trading energy consumption rights, carbon emissions rights, pollution rights and water rights.

Snapshot: Major amendment to the Party Constitution The Party Congress endorsed a number of amendments to the Party Constitution. One of the major amendments is to incorporate the ‘Scientific Outlook on Development’ into the CPC guiding ideology, along with Marxism-Leninism, the Mao Zedong Thought, the and Jiang Zemin’s ‘Three Represents’. According to Hu Jintao, the ‘Scientific Outlook on Development takes development as its essence; “putting people first” as its core; comprehensive, balanced and sustainable development as its basic requirement; and overall coordination as its fundamental approach.’ In our view, the move confirmed that the Party will continue to adopt this approach to tackle the challenges and problems facing China in the foreseeable future, despite the change in leadership.

Li & Fung Research Centre Member of the Fung Group 5 China Distribution & Trading Issue 106 December 2012

Part Two: Short term economic tasks set by the State Council

On 17 October, Premier Wen Jiabao presided at a State Council meeting, setting the key economic tasks for 4Q12.5. See below for more details:

1. Fiscal and monetary policies

– To maintain the proactive fiscal policy and the prudent monetary policy

– To push forward the pilot program of replacing business tax (BT) with value-added tax (VAT) in a prudent manner

– To prevent any sudden increase in government expenditures by the end of the year

– To maintain appropriate levels of liquidity and new RMB loans.

– To expand the scale of bond issuance

2. Policies to adjust economic structure

– To adopt policies stated in the policy document ‘the opinions on deepening the reform and accelerating the development of the distribution sector’6

– To better implement the measures promoting consumption of products such as energy-saving home appliances, etc.

– To increase financial support to and accelerate the construction of key national projects

– To encourage private investments in sectors which are in line with the national industrial policies

3. Policies to boost agricultural production

– To implement the procurement policies on rice, corn, soybean and cotton

– To ensure stable production of agricultural livestock and aquatic products

– To encourage farmers to stabilize the seeded areas of winter wheat and rape

– To maintain stable supply and prices of agricultural inputs such as fertilizers, etc.

5 http://www.gov.cn/ldhd/2012-10/18/content_2246160.htm 6 http://www.gov.cn/zwgk/2012-08/07/content_2199496.htm

Li & Fung Research Centre Member of the Fung Group 6 China Distribution & Trading Issue 106 December 2012

4. Reforms

– To push forward reforms in areas such as fiscal and taxation system, investment and financing, power tariffs, administrative approval system, etc.

– To formulate the overall scheme of the income distribution reform and the rules of expropriation of collective land in the rural areas

5. Policies to maintain export and import growth

– To implement the measures to maintain stable growth of China’s exports and imports7

6. Property policies

– To continue to tighten the property market

– To strictly implement the differentiated tax and mortgage policies, as well as the home purchases restrictions

– To push forward the construction of public housing and ensure the apartments are fairly allocated to low-income households

– To increase the supply of ‘private ordinary homes’

7. Policies to improve social welfare

– To expand the coverage of the old-age insurance program nationwide

7 The measures were announced on 12 September. For more details, please refer to http://www.mofcom.gov.cn/aarticle/ae/ ai/201209/20120908336818.html

Li & Fung Research Centre Member of the Fung Group 7 China Distribution & Trading Issue 106 December 2012

Part Three: Reshuffling of the Party’s top leadership

On 15 November, the second day after the closing of the Congress, the newly elected CPC Central Committee held its First Plenary Session. The new group of CPC leaders for the next five years were elected in the Plenary Session, including twenty five members of the Political Bureau; seven members of the Standing Committee of the Political Bureau; and the General Secretary.

Xi Jinping succeeded Hu Jintao as the General Secretary of the Party and the Chairman of the CPC Central Military Commission. Xi Jinping, , , , , Qishan and were elected as the members of the Standing Committee of the Political Bureau, forming the core of China’s leadership. It is widely expected that Li Keqiang will succeed Wen Jiabao as the Premier of the State Council in March 2013. (See Appendix 1 for the profiles of the Standing Committee members)

Li & Fung Research Centre Member of the Fung Group 8 China Distribution & Trading Issue 106 December 2012

Exhibit 1: Organization structure of the CPC Central Leadership

CPC National Party Congress 中國共產黨全國代表大會

Central Committee Central Commission for Discipline Inspection 中央委員會 (9 members) 205 Members/ 171 alternative members 中央紀律檢查委員會 ( 共 9 人 ) 委員 ( 共 人 )/ 候補委員 ( 共 人 ) 205 171 Secretary 書記 : 王岐山 Deputy secretaries 副書記 : Hongzhu 趙洪祝 , 黃樹賢 , Li Yufu 李玉賦 , Du Jincai 杜金才 , Wu Yuliang 吳玉良 , Zhang Jun 張軍 , Chen Wenqing 陳文清 , Wang Wei 王偉

General Secretary Standing Committee of Political Bureau (25 members) 總書記 the Political Bureau 中央政治局 ( 共 25 人 ) Xi Jinping (7 Standing Committee Xi Jinping 習近平 , 馬凱 , 習近平 members) Wang Qishan 王岐山 , 王滬寧 , Liu Yunshan 劉雲山 , 劉延東 , 中央政治局常務委員會 劉奇葆 , 許其亮 , ( 共 7 人 ) 孫春蘭 , 孫政才 , Xi Jinping 習近平 , Li Keqiang 李克強 , 李建國 , Li Keqiang 李克強 , 李源潮 , 汪洋 , Zhang Dejiang 張德江 , 張春賢 , Zhang Gaoli 張高麗 , Yu Zhengsheng 俞正聲 , Zhang Dejiang 張德江 , 范長龍 , Liu Yunshan 劉雲山 , 孟建柱 , 趙樂際 , Wang Qishan 王岐山 , 胡春華 , Yu Zhengsheng 俞正聲 , Zhang Gaoli 張高麗 栗戰書 , 郭金龍 , 韓正

CPC Central Military Commission (11 Members) 中央軍事委員會 ( 共 11 人 ) Chairman 主席 : Xi Jinping 習近平 Secretariat (7 members) Vice Chairmen 副主席 : 中央書記處 ( 共 7 人 ) Fan Changlong 范長龍 , Secretary 書記 : Xu Qiliang 許其亮 Liu Yunshan 劉雲山 , Liu Qibao 劉奇葆 , 委員 Members : Zhao Leji 趙樂際 , Li Zhanshu 栗戰書 , Chang Wanquan 常 萬 全 , 房 峰 輝 , 杜青林 , 趙洪祝 , 張陽 , Zhao Keshi 趙克石 , 楊晶 Zhang Youxia 張又俠 , Wu Shengli 吳勝利 , Ma Xiaotian 馬曉天 , Wei Fenghe 魏鳳和

Li & Fung Research Centre Member of the Fung Group 9 China Distribution & Trading Issue 106 December 2012

Appendix 1: Profiles of the members of the Standing Committee of the Political Bureau

Xi Jinping The General Secretary of the CPC Central Committee, the Standing Committee member of the Political Bureau of the CPC Central Committee, the Chairman of the CPC Central Military Commission, the Vice President of the People's Republic of China, the Vice Chairman of the Central Military Commission of the People's Republic of China

Son of , the former Vice-Premier of the State Council, Xi Jinping was born in Beijing in 1953. He studied basic organic synthesis at the Chemical Engineering Department of Tsinghua University in the late 1970s. After graduation, he worked as the Secretary at the General Office of the State Council, before becoming the Deputy Secretary in Zhengding County in Hebei in 1982. He moved to work in Fujian in 1985 and served as the Vice Mayor of Xiamen. He rose through the ranks in Fujian from 1985 through 2002. In October 2002, he was appointed as the Deputy Secretary of the CPC Provincial Committee. After having worked in Zhejiang for five years, he was appointed as the Secretary of the CPC Shanghai Municipal Committee and was elected as a member of the Standing Committee of the Political Bureau of the CPC Central Committee in 2007. In 2008, he became the Vice President of the People’s Republic of China, and in 2012 succeeded Hu Jintao as the General Secretary of the Party and the Chairman of the CPC Central Military Commission.

Age: 59 Home Province: Shaanxi Education Background: Graduated with LLD degree from Tsinghua University

Career Path: 1969 Sent to the countryside and worked at Liangjiahe Brigade, Wen'anyi Commune, Yanchuan County, Shaanxi Province, and served as the Party Branch Secretary

1975 Studied as a student of basic organic synthesis at the Chemical Engineering Department of Tsinghua University

1979 Became the Secretary at the General Office of the State Council and the General Office of the Central Military Commission (as an officer in active service)

1982 Appointed as the Deputy Secretary of the CPC Zhengding County Committee, Hebei Province

1983 Promoted to the Secretary of the CPC Zhengding County Committee, Hebei Province

1985 Became a member of the Standing Committee of the Municipal Party Committee and promoted to the Vice Mayor of Xiamen, Fujian Province

1988 Appointed as the Secretary of the CPC Ningde Prefectural Committee, Fujian Province

1990 Served as the Secretary of the CPC Fuzhou Municipal Committee and the Chairman of the Standing Committee of the Fuzhou Municipal People's Congress, Fujian Province

1993 Became a member of the Standing Committee of the CPC Fujian Provincial Committee, and became the Chairman of the Standing Committee of the Fuzhou Municipal People's Congress

1995 Worked as the Deputy Secretary of the CPC Fujian Provincial Committee

Li & Fung Research Centre Member of the Fung Group 10 China Distribution & Trading Issue 106 December 2012

1999 Promoted to the Acting Governor of Fujian Province

2000 Promoted to the Governor of Fujian Province

2002 Became the Acting Governor of Zhejiang Province, the Deputy Secretary and then the Secretary of the CPC Zhejiang Provincial Committee

2003 Served as the Chairman of the Standing Committee of the Zhejiang Provincial People's Congress

2007 Elected as a member of the Standing Committee of the Political Bureau of the CPC Central Committee and a member of the Secretariat of the CPC Central Committee, and served as the Secretary of the CPC Shanghai Municipal Committee until October

2008 Became the Vice President of the People’s Republic of China

2010 Became the Vice Chairman of the CPC Central Military Commission, the Vice Chairman of the Central Military Commission of the People's Republic of China

2012 Elected as the General Secretary of the CPC Central Committee and a member of the Standing Committee of the Political Bureau of the CPC Central Committee, and became the Chairman of the CPC Central Military Commission

Li Keqiang The Standing Committee member of the Political Bureau of the CPC Central Committee, the Vice-Premier of the State Council, the Deputy Secretary of the Leading Party Members' Group of the State Council

Born in Anhui in 1955, Li Keqiang studied at Peking University, where he completed a doctorate. He rose through the ranks of the China Communist Youth League (CYL) from 1983 through 1998. In 1999, he took on the role of the Governor of Henan, and later became the Secretary of the CPC Liaoning Provincial Committee in 2004. Afterwards, in 2007, he was elected as a member of the Standing Committee of the Political Bureau of the CPC Central Committee, and was then appointed as the Vice-Premier of the State Council in 2008.

Age: 57 Home Province: Anhui Education Background: Obtained MA and doctorate of Economics from Peking University

Career Path: 1974 Sent to the countryside and worked at Dongling Brigade, Damiao Commune, Fengyang County, Anhui Province

1976 Became the Party Branch Secretary of Damiao Brigade, Damiao Commune, Fengyang County, Anhui Province

1978 Studied as a student of the Department of Law and became the leading member of the Student Union of Peking University

1982 Served as the Secretary of the CYL committee of Peking University

1983 Worked as the Director General of the School Department of the CYL Central Committee and concurrently the Secretary General of the All-China Students' Federation, alternate member of the Secretariat of the CYL Central Committee

Li & Fung Research Centre Member of the Fung Group 11 China Distribution & Trading Issue 106 December 2012

1985 Became a member of the Secretariat of the CYL Central Committee and the Vice Chairman of the All-China Youth Federation

1993 Served as the First Secretary of the Secretariat of the CYL Central Committee and concurrently the President of the China Youth Political College

1998 Appointed as the Deputy Secretary of the CPC Henan Provincial Committee and promoted to the Acting Governor of Henan Province

1999 Promoted to the Governor of Henan Province

2002 Promoted to the Secretary of the CPC Henan Provincial Committee

2003 Became the Chairman of the Standing Committee of the Henan Provincial People's Congress

2004 Appointed as the Secretary of the CPC Liaoning Provincial Committee

2005 Served as the Chairman of the Standing Committee of the Liaoning Provincial People's Congress

2007 Elected as a member of the Standing Committee of the Political Bureau of the CPC Central Committee

2008 Promoted to the Vice-Premier of the State Council

2012 Elected as a member of the Standing Committee of the Political Bureau of the CPC Central Committee

Zhang Dejiang The Standing Committee member of the Political Bureau of the CPC Central Committee, the Vice Premier of the State Council, the member of the Leading Party Members' Group of the State Council

Born in 1946, Zhang Dejiang studied economics at Kim II Sung University in the Democratic People's Republic of Korea. After graduation, he returned to China and worked in Yanbian University. In 1983, he became the Deputy Secretary of the CPC Yanji Municipal Committee. Afterwards, in 1985, he was appointed as the Deputy Secretary of the CPC Yanbian Prefectural Committee, before being promoted to the Vice Minister of the Ministry of Civil Affairs in 1986. From 1995 through 2002, he took top party posts in Jilin, and then in Zhejiang. In November 2002, he moved to work in and became the Secretary of the CPC Guangdong Provincial Committee. In 2008, he was promoted to the Vice-Premier of the State Council.

Age: 66 Home Province: Liaoning Education Background: Graduated from the Department of Economics of Kim II Sung University in the Democratic People's Republic of Korea

Career Path: 1968 Sent to the countryside and worked at Taiping Brigade, Luozigou Commune, Wangqing County, Jilin Province

1970 Became the Administrative Secretary of the Publicity Group and the Secretary of the CYL Branch of the Revolutionary Committee, Wangqing County, Jilin Province

1972 Studied as a student of Korean language at the Department of Korean Language, Yanbian University

Li & Fung Research Centre Member of the Fung Group 12 China Distribution & Trading Issue 106 December 2012

1975 Became the Deputy Secretary of the General Party Branch at the Department of Korean Language, the Standing Committee member of the Party Committee, the Vice Chairman of the Revolutionary Committee, Yanbian University

1978 Studied as a student at the Department of Economics, became the Secretary of the Party Branch of Chinese Students of Kim II Sung University, the Democratic People's Republic of Korea

1980 Became the Standing Committee member of the Party Committee and the Vice President of Yanbian University

1983 Became the Deputy Secretary of the CPC Yanji Municipal Committee and the Standing Committee member of the CPC Yanbian Prefectural Committee, Jilin Province

1985 Became the Deputy Secretary of the CPC Yanbian Prefectural Committee in Jilin Province

1986 Appointed as the Vice Minister of the Ministry of Civil Affairs and the Deputy Secretary of its Leading Party Members' Group

1990 Served as the Deputy Secretary of the CPC Jilin Provincial Committee and concurrently the Secretary of the CPC Yanbian Prefectural Committee

1995 Promoted to the Secretary of the CPC Jilin Provincial Committee, and served as the Chairman of the Standing Committee of the Jilin Provincial People's Congress

1998 Appointed as the Secretary of the CPC Zhejiang Provincial Committee

2002 Elected as a member of the Political Bureau of the CPC Central Committee and became the Secretary of the CPC Guangdong Provincial Committee

2008 Appointed as the Vice Premier of the State Council

2012 Elected as a member of the Standing Committee of the Political Bureau of the CPC Central Committee, and served as the Secretary of the CPC Chongqing Municipal Committee until 20 November

Yu Zhengsheng The Standing Committee member of the Political Bureau of the CPC Central Committee

Born in 1945, Yu Zhengsheng studied automatic control systems of ballistic missiles at the Harbin Military Engineering Institute. He began his working life in a radio factory in Hebei in the late 1960s. From 1975 through 1982, he worked as an engineer in the Fourth Ministry of Machine-Building Industry, before joining the Ministry of Electronics Industry. In 1985, he was appointed as the Deputy Secretary of the CPC Yantai Municipal Committee, and later took up senior positions in . In 1997, he was appointed as the Minster of the Ministry of Construction. He moved on to work in Hubei in 2001 and became the Secretary of the CPC Hubei Provincial Committee. Afterwards, in 2007, he was appointed as the Secretary of the CPC Shanghai Municipal Committee.

Age: 67 Home Province: Zhejiang Education Background: Graduated from the Department of Missile Engineering at the Harbin Military Engineering Institute

Li & Fung Research Centre Member of the Fung Group 13 China Distribution & Trading Issue 106 December 2012

Career Path: 1963 Studied as a student of automatic control systems of ballistic missiles at the Department of Missile Engineering, the Harbin Military Engineering Institute

1968 Worked as a technician in the Zhangjiakou No. 6 Radio Factory, Hebei Province

1971 Became a technician and the leader of the Qiaoxi Radio Factory in Zhangjiakou, Hebei Province

1975 Worked as an engineer in the Research Institute for Promotion and Application of Electronic Technology of the Fourth Ministry of Machine-Building Industry

1981 Promoted to the Assistant Chief Engineer in the Research Institute for Promotion and Application of Electronic Technology of the Fourth Ministry of Machine-Building Industry

1982 Became the Deputy Director of the Research Institute for Promotion and Application of Electronic Technology, the Director of the Department of Microcomputer Management of the Administration for Computer Industry, and the Deputy Director of the Planning Department of the Ministry of Electronics Industry

1984 Became the Chief and the Vice Chairman of the Executive Council of the China Welfare Fund for Disabled Persons

1985 Appointed as the Deputy Secretary of the CPC Yantai Municipal Committee, Province

1987 Served as the Mayor of the Yantai Municipal People's Government, Shandong Province

1989 Became the Deputy Secretary of the CPC Qingdao Municipal Committee, the Deputy Mayor and then the Mayor of the Qingdao Municipal People's Government, Shandong Province

1992 Became the Standing Committee member of the CPC Shandong Provincial Committee and the Secretary of the CPC Qingdao Municipal Committee

1997 Appointed as the Secretary of the Leading Party Members' Group and the Vice Minister of the Ministry of Construction

1998 Promoted to the Minister of the Ministry of Construction

2001 Appointed as the Secretary of the CPC Hubei Provincial Committee

2002 Elected as a member of the Political Bureau of the CPC Central Committee, and became the Chairman of the Standing Committee of the Hubei Provincial People's Congress

2007 Appointed as the Secretary of the CPC Shanghai Municipal Committee

2012 Elected as a member of the Standing Committee of the Political Bureau of the CPC Central Committee

Li & Fung Research Centre Member of the Fung Group 14 China Distribution & Trading Issue 106 December 2012

Liu Yunshan The Standing Committee member of the Political Bureau of the CPC Central Committee, the member of the Secretariat of the CPC Central Committee, the Head of the Publicity Department of the Communist Party

Born in 1947, Liu Yunshan began his career as a teacher in in the late 1960s. Afterwards, he became a journalist in mid-1970s, working in the Inner Mongolia Bureau of the . In 1984, he was appointed as the Deputy Head of the Publicity Department of the CPC Inner Mongolia Autonomous Regional Committee, and was promoted to the Head of the department in 1986. From 1987 through 1993, he rose through the ranks in Inner Mongolia. Afterwards, in 1993, he moved to Beijing to become the Deputy Head of the Publicity Department of the CPC Central Committee. In 2002, he was promoted to the Head of the Publicity Department of the CPC Central Committee, and has held the position since then.

Age: 65 Home Province: Education Background: Graduated from the Party School of the CPC Central Committee

Career Path: 1964 Studied as a student in Jining Teachers' College, Inner Mongolia Autonomous Region

1968 Worked as a teacher in Bashi School in Tumd Left Banner and a worker in Sobugai Commune in Tumd Right Banner, Inner Mongolia Autonomous Region

1969 Worked as the Administrative Secretary of the Publicity Department of the CPC Tumd Right Banner Committee, Inner Mongolia Autonomous Region

1975 Worked as a reporter and the Deputy Chief of the Agricultural and Animal Husbandry Section of the Inner Mongolia Bureau of Xinhua News Agency

1982 Served as the Deputy Secretary of the CYL Inner Mongolia Autonomous Regional Committee and the Deputy Secretary of its Leading Party Members' Group

1984 Appointed as the Deputy Head of the Publicity Department of the CPC Inner Mongolia Autonomous Regional Committee

1986 Became the Standing Committee member of the CPC Inner Mongolia Autonomous Regional Committee and the Head of the Publicity Department

1987 Served as the Secretary-General of the CPC Inner Mongolia Autonomous Regional Committee and concurrently the Secretary of the Working Committee of Organs Directly under the CPC Inner Mongolia Autonomous Regional Committee

1991 Appointed as the Secretary of the CPC Chifeng Municipal Committee, Inner Mongolia

1992 Served as the Deputy Secretary of the CPC Inner Mongolia Autonomous Regional Committee

1993 Promoted to the Deputy Head of the Publicity Department of the CPC Central Committee

2002 Elected as a member of the Political Bureau, became a member of the Secretariat and the Head of the Publicity Department of the CPC Central Committee

2012 Elected as a member of the Standing Committee of the Political Bureau of the CPC Central Committee

Li & Fung Research Centre Member of the Fung Group 15 China Distribution & Trading Issue 106 December 2012

Wang Qishan The Standing Committee member of the Political Bureau of the CPC Central Committee, the Secretary of the Central Commission for Discipline Inspection, the Vice Premier of the State Council and a member of the Leading Party Members Group of the State Council

Born in 1948, Wang Qishan studied history in Northwest University in China. After graduating from the university, he worked for the Shaanxi Provincial Museum in the late 1970s. He moved to Beijing in 1979 and became an intern researcher in the Chinese Academy of Social Sciences. In 1988, he was appointed as the General Manager of China Rural Trust and Investment Corporation. He later served in top posts in the and the People's Bank of China from 1989 through 1997. Afterwards, he took senior government and party positions in Guangdong, and then in , before becoming the Mayor of Beijing in 2004. In 2008, he was promoted to the Vice-Premier of the State Council, and was named as the Secretary of the Central Commission for Discipline Inspection in November 2012.

Age: 64 Home Province: Shanxi Education Background: Graduated from the Department of History at Northwest University, majoring in history.

Career Path: 1969 Sent to the countryside and worked at the Fengzhuang Commune, Yan'an County, Shaanxi Province

1971 Worked for the Shaanxi Provincial Museum

1973 Studied as a student at the Department of History of Northwest University

1976 Worked for the Shaanxi Provincial Museum

1979 Worked as an intern researcher at the Institute of Modern History of the Chinese Academy of Social Sciences

1982 Worked as the Deputy Director of the Liaison Office of the Rural Policy Research Office of the Secretariat of the CPC Central Committee

1986 Worked as the Research Fellow at the Bureau Level of the Rural Policy Research Office of the Secretariat of the CPC Central Committee

1988 Became the General Manager and the Secretary of the Party Committee of China Rural Trust and Investment Corporation

1989 Became the Vice Governor and a member of the Leading Party Members' Group of the People's Construction Bank of China

1993 Became the Vice Governor and a member of the Leading Party Members' Group of the People's Bank of China

1994 Served as the Governor and the Secretary of the Leading Party Members' Group of the People's Construction Bank of China (renamed the China Construction Bank in 1996)

1997 Became the Standing Committee member of the CPC Guangdong Provincial Committee

1998 Appointed as the Vice Governor of Guangdong Province

2000 Became the Director and the Secretary of the Leading Party Members' Group of the Office for Economic Restructuring of the State Council

Li & Fung Research Centre Member of the Fung Group 16 China Distribution & Trading Issue 106 December 2012

2002 Appointed as the Secretary of the CPC Hainan Provincial Committee and the Chairman of the Standing Committee of the Hainan Provincial People's Congress

2003 Became the Deputy Secretary of the CPC Beijing Municipal Committee and the Acting Mayor of Beijing

2004 Served as the Mayor of Beijing

2007 Elected as a member of the Political Bureau of the CPC Central Committee

2008 Promoted to the Vice Premier and became the member of the Leading Party Members' Group of the State Council

2012 Elected as a member of the Standing Committee of the Political Bureau and became the Secretary of the Central Commission for Discipline Inspection

Zhang Gaoli The Standing Committee member of the Political Bureau of the CPC Central Committee

Born in 1946, Zhang Gaoli studied planning and statistics at the Department of Economics of Xiamen University. He began his working life in an oil refinery in Maoming in Guangdong in the early 1970s. In 1984, he became the Deputy Secretary of the CPC Maoming Municipal Committee in Guangdong. Afterwards, in 1988, he was promoted to the Deputy Governor of Guangdong Province, before becoming the Secretary of the CPC Shenzhen Municipal Committee in 1997. He moved on to work in Shangdong in 2001 and became the Deputy Secretary of the CPC Shandong Provincial Committee. In 2007, he was appointed as the Secretary of the CPC Tianjin Municipal Committee and joined the Political Bureau.

Age: 66 Home Province: Fujian Education Background: Graduated from planning and statistics at the Department of Economics of Xiamen University

Career Path: 1965 Studied as a student of planning and statistics at the Department of Economics of Xiamen University

1970 Worked as the Secretary of the Production Office of the Guangdong Maoming Petroleum Company under the Ministry of Petroleum Industry

1977 Worked as the Secretary of the CPC General Branch of the No.1 Workshop of the refinery of Guangdong Maoming Petroleum Company under the Ministry of Petroleum Industry

1980 Became the Standing Committee member of the Party Committee, the Chief of the Planning Section and the Deputy Manager of Maoming Petroleum Industrial Company under the Ministry of Petroleum Industry

1984 Served as the Deputy Secretary of the CPC Maoming Municipal Committee in Guangdong Province and the Manager of Maoming Petroleum Industrial Company

1985 Became the Director and the Secretary of the Leading Party Members' Group of the Guangdong Provincial Economic Commission

1988 Appointed as the Deputy Governor of Guangdong Province

Li & Fung Research Centre Member of the Fung Group 17 China Distribution & Trading Issue 106 December 2012

1992 Served as the Director and the Secretary of the Leading Party Members' Group of the Guangdong Provincial Planning Commission

1997 Appointed as the Secretary of the CPC Shenzhen Municipal Committee

1998 Became the Deputy Secretary of the CPC Guangdong Provincial Committee

2000 Became the Chairman of the Standing Committee of the Shenzhen Municipal People's Congress

2001 Became the Acting Governor and then the Governor of Shandong Province, and the Deputy Secretary of the CPC Shandong Provincial Committee

2002 Promoted to the Secretary of the CPC Shandong Provincial Committee, and the Governor of Shandong Province

2003 Became the Chairman of the Standing Committee of the Shandong Provincial People's Congress

2007 Served as the Secretary of the CPC Tianjin Municipal Committee, elected as a member of the Political Bureau of the CPC Central Committee

2012 Elected as a member of the Standing Committee of the Political Bureau

Appendix 2: Some facts about the CPC and the National Party Congress 1. The Communist Party of China (CPC)

Guaranteed by the country's constitution, the CPC is the ruling political party of the PRC. With more than 82 million members, the CPC is the largest political party in the world. It aims to build socialism with Chinese characteristics. The party takes Marxism-Leninism, the Mao Zedong Thought, the Deng Xiaoping Theory, Jiang Zemin’s ‘Three Represents’ and ‘Scientific Outlook on Development’ as the guidance of its actions.

2. Central organizations of the Party

(1) The National Party Congress

– The central leading organ of the Party. – For the past three decades, the National Party Congress is held once every five years. – In the past three decades, the membership changes in the National Party Congress have symbolized the leadership changes in the PRC, and therefore have gained international media attention. – Its functions and powers are to hear and examine the report of the Central Committee; to hear and examine the report of the Central Commission for Discipline Inspection; to discuss and decide on major issues of the Party; to revise the Party constitution; and to elect the Central Committee and the Central Commission for Discipline Inspection. – At every Congress, the direction of the Communist Party for the next five years is determined, usually associated with certain political theories or ideologies. Several congresses in the past modified the party's general direction. For example, the 11th National Party Congress kick-started the Chinese economic reform reform in 1978; the 16th National Party Congress saw Jiang Zemin's Three Represents entrenched into the Party Constitution as one of its guiding ideologies.

Li & Fung Research Centre Member of the Fung Group 18 China Distribution & Trading Issue 106 December 2012

(2) The Central Committee

It is elected by the National Party Congress. When the National Party Congress is not in session, the Central Committee leads all the work of the Party and represents the CPC outside the Party. It is elected for a term of five years.

(3) The Political Bureau, the Standing Committee of the Political Bureau, and the General Secretary

The leading organs of the Central Committee are the Political Bureau, its Standing Committee and General Secretary of the Central Committee.

They are all elected by the plenary session of the Central Committee. When the plenum of the Central Committee is not in session, the Political Bureau and its Standing Committee exercise the functions and powers of the Central Committee.

The Political Bureau

– A group of 19 to 25 people who oversee the CPC – Power within the Political Bureau is centralized in the Standing Committee of the Political Bureau. – The Political Bureau is appointed by the Central Committee. – The power of the Political Bureau resides largely in the fact that its members generally hold important positions within the PRC government at the same time, and they also have control over personnel appointments within the PRC government. – It appears that the full Political Bureau meets once a month and the standing committee meets weekly. The agenda for the meetings appears to be controlled by the General Secretary and decisions are made by consensus rather than by majority vote.

The Standing Committee of the Political Bureau

– A committee whose membership varies between 5 and 9 and includes the top leadership of the CPC – Its internal operation is not disclosed to the public, although it is believed that its decisions are made by consensus. – Membership of the Standing Committee is formally approved by the Central Committee, although in practice, its membership appears to be the result of negotiations among the top leadership of the CPC.

General Secretary

The highest ranking official within the CPC, who heads the Standing Committee of the Political Bureau and the Secretariat of the CPC.

(4) Offices and Departments under the Central Committee

Under the Central Committee of the CPC are such offices and departments as the General Affairs Office, the Organization Department, the Publicity Department, the International Liaison Department, the Work Department and the Policy Research Office.

Li & Fung Research Centre Member of the Fung Group 19 China Distribution & Trading Issue 106 December 2012

The Secretariat of the Central Committee is the administrative body of the Political Bureau and its Standing Committee. The secretaries of the Central Committee are responsible for calling sessions of both the Political Bureau and its Standing Committee, and are in charge of the work of the Secretariat of the Central Committee.

Members of the Central Military Commission of the CPC are decided on by the Central Committee.

3. Local organizations of the Party

Party congresses of various provinces, autonomous regions, municipalities, cities with districts and autonomous prefectures are held once every five years. The Party committees are elected for a term of five years. Members and alternate members of these committees must have a Party standing of at least five years.

4. Grassroots organizations of the Party

A grassroots Party organization, in which there are three or more full members of the Party, shall be set up in enterprises, local regions, cultural divisions, factories, organizations, schools, research institutes, neighborhoods, People's Liberation Army, companies and other basic units.

5. Central and local discipline inspection commissions

Discipline inspection commissions are also set up at various levels of the CPC. Their major tasks are to maintain CPC's constitution and other inner Party rules and regulations, assist Party committees to strengthen the Party style, examine the implementation of the lines, policies, principles and decisions of the Party. The Central Commission for Discipline Inspection works under the Party Central Committee. The local discipline inspection commissions work under the dual leadership of the Party committees at the same level and discipline inspection commissions at the next higher level. The of discipline inspection commissions is the same as that of the Party committees.

© Copyright 2012 Li & Fung Research Centre. All rights reserved. Though Li & Fung Research Centre endeavours to have information presented in this document as accurate and updated as possible, it accepts no responsibility for any error, omission or misrepresentation. Li & Fung Research Centre and/or its associates accept no responsibility for any direct, indirect or consequential loss that may arise from the use of information contained in this document. Reproduction or redistribution of this material without Li & Fung Research Centre’s prior written consent is prohibited.

Li & Fung Research Centre Member of the Fung Group 20