The Chinese Communist Party and Its State Xi Jinping's Conservative Turn

Total Page:16

File Type:pdf, Size:1020Kb

The Chinese Communist Party and Its State Xi Jinping's Conservative Turn THE CHINESE COMMUNIST PARTY AND ITS STATE XI JINPING’S CONSERVATIVE TURN Michał Bogusz, Jakub Jakóbowski WARSAW APRIL 2020 THE CHINESE COMMUNIST PARTY AND ITS STATE XI JINPING’S CONSERVATIVE TURN Michał Bogusz, Jakub Jakóbowski © Copyright by Centre for Eastern Studies CONTENT EDITOR Adam Eberhardt, Krzysztof Strachota EDITOR Małgorzata Zarębska, Szymon Sztyk CO-OPERATION Anna Łabuszewska TRANSLATION Jim Todd CHARTS Urszula Gumińska-Kurek MAP Wojciech Mańkowski, Urszula Gumińska-Kurek GRAPHIC DESIGN PARA-BUCH DTP IMAGINI PHOTOGRAPH ON COVER Hung Chung Chih / Shutterstock.com Centre for Eastern Studies ul. Koszykowa 6a, 00-564 Warsaw, Poland tel.: (+48) 22 525 80 00, [email protected] www.osw.waw.pl ISBN: 978-83-65827-49-4 Contents THESES | 5 INTRODUCTION | 8 LIST OF ABBREVIATIONS | 12 1. THE PARTY AND ITS STATE: THE PRC’S POLITICAL SYSTEM | 13 1.1. The structure and operation of the CCP | 13 1.2. The PRC’s state structures | 39 1.3. The relationship between the centre and the provinces | 50 2. XI JINPING’S CONSERVATIVE TURN | 63 2.1. Challenges for the Party and the selection of Xi Jinping | 65 2.2. The conservative turn in the CCP: the end of the collective leadership? | 80 2.3. Reconstruction of the state apparatus | 95 3. CONTROL AND MANAGEMENT OF SECTORAL POLICIES | 106 3.1. Economic policy | 106 3.2. Foreign and security policy | 115 3.3. Control of society and the Party | 123 CONCLUSIONS | 134 ANNEXES | 137 THESES • In accordance with the Leninist model, the total dominance of the Chinese Communist Party (CCP) over state structures is inscribed into the Chi- nese political system; the state structures’ sole purpose is to aid the Party to govern China effectively and guarantee the Party’s monopoly on power. The Party makes all personnel decisions, controls domestic and foreign pol- icy, wields direct control over the army, and has the prevailing influence on the economy through the state-owned enterprises sector. It has no legal personality; it exists outside the state structures, in parallel to them, and also above them, acting as their binding agent, and also as the source of its cadres. The Party’s structures are also the place where decisions are taken; they also transmit those decisions’ into the complex and multi-level state structures of the People’s Republic of China (PRC). The CCP thus plays the role of the state’s ‘nervous system’, and as such, there is no alternative to it within the PRC’s present political system. • The official image of the Party monolith hides a dynamic, inter-generational and internally complex multilevel organisation, with a total of 90 million members. It is an arena for struggles for power between factions and in- terest groups and, increasingly, family clans. The dynamics of power with- in the CCP, and consequently the functioning of the state’s structures, are undergoing constant transformation, demonstrating the PRC’s great flexi- bility. Upon initiating the reform process after 1978, the Party moved away from the politically unstable one-man rule of Mao Zedong. It also began to institutionalise the rules of Party governance and to balance the influ- ences of internal political forces, represented by the concept of ‘collective leadership’ at the top of the Party. Comprehensive reforms and a strength- ening of the state structures were initiated, as well as economic transfor- mation; this latter was driven by the shifting of much power to the regional structures and opening up the economy to the world. The Party also be- gan to withdraw from the ideological disciplining of society, and offered it the opportunity to improve their material status, while maintaining con- trol over all organised forms of social life and suppressing any symptoms of independence. 4/2020 • Despite the spectacular success of the reform programme and the opening- T -up which began in 1978, the CCP entered the twenty-first century with a feeling of growing, multidimensional problems which could potential- REPOR W ly jeopardise its continued rule over China. The decentralisation in the OS 5 management of the state and the inclusion of the Party structures in the development of a capitalist economy, in conjunction with the new plural- ism at the top of the CCP, brought serious political challenges: debilitat- ing factional fighting, the emergence of centrifugal forces in the regions, and corruption undermining the CCP’s social legitimacy. These problems have also lowered the capacity for the internal reforms that have become necessary in the face of the ongoing exhaustion of the model of economic development which was devised after 1978. This has been topped off by the transformations in the international environment which are of key impor- tance to China, including the intensification of its competition with the United States. • When Xi Jinping assumed power as General Secretary in 2012, he received a mandate from the CCP’s leaders to make a major adjustment in the struc- tures of the Party and state, a kind of conservative turn aimed at restor- ing the prospects for the CCP’s continued, indivisible rule in China. His response to the problems facing the Party has been a conservative – and more precisely, in the Chinese context, a neoconservative – renewal of the foundations of the PRC as established in 1949, including the strengthening of the Party at the expense of the state, a return to ideology as a tool of social control, and the rejection of previous experiments in limiting the Party’s power by means of the rule of law and political liberalisation. In the dimension of socio-political governance, the methods Xi has employed are inspired by Leninist-Stalinist concepts, although this has been selective in nature, and has not included country-wide mass repressions or the central planning of the economy. From the perspective of the political status quo which was devised at the end of the twentieth century, the tools Xi has used to implement these changes are revolutionary in nature, and are associated with changes in the internal operation of the CCP. However, there are many signs that Xi’s policy turn is taking place with the support of the Party’s most influential clans and of some Party elders who see Xi’s programme as a way to save the special Party-state project which the PRC is. This con- servative turn has led to a change in direction in the PRC’s foreign policy, which poses a challenge to the existing international order and has led to its re-evaluation. 4/2020 T • The essence of the changes Xi is making is the concentration of power in the hands of the CCP top leadership, at the expense of sectoral interest groups REPOR in the Party; the cadres at the local level; and the state and Party bureau- W OS cracy at the central level. This is being done through an unprecedented 6 replacement of Party cadres through the anti-corruption campaign, the development of informal Party bodies controlling the decision-making process, as well as the centralising reforms of the state administration. In parallel, Xi has been developing an extensive system of social control based on modern surveillance technologies and artificial intelligence, aimed at both the internal ideological disciplining of the CCP members, and at pre- venting potential sources of opposition arising among the public, as well as shaping behaviour at the individual level. The concentration of power and the strengthening of surveillance are intended to make the state more manageable and increase social stability in the face of rising internal and in- ternational challenges. As a result, however, the CCP’s ever-tightening con- trol over the economy often comes into conflict with its attempts to create a modern, innovative economic system based largely on the private sector. This is also calling into question the implementation of the most important reform package announced by Xi Jinping – the development of a new model of economic growth for the PRC. • Xi Jinping’s conservative turn translates into major changes in the for- mulation of sectoral policies in the PRC, affecting both decision-making processes and communication channels in foreign relations with the PRC. The personalisation of power in China increases the importance of people who have personal ties to Xi Jinping. Decision-making powers – not only those affecting policy, but also the governance of the state – are being moved to formal and informal structures within the CCP’s central structures. De- pending on the particular policy sectors, the decision-making process is centralised either by strengthening or creating new institutions, or by the significant concentration of prerogatives and positions into the hands of individuals from Xi Jinping’s inner circle. This is creating a new mosaic of personnel at the top of the CCP, in which the importance of people in formal positions is increasingly giving way to political membership of Xi’s inner circle and positions within informal Party bodies. 4/2020 T REPOR W OS 7 INTRODUCTION The fundamental feature of the Chinese political system is the primacy of the Chinese Communist Party and its control over all areas of the state’s operation as well as a large part of the economy. Historically, the CCP’s organisational and decision-making structures preceded the existence of the People’s Repub- lic of China; therefore, in accordance with the Leninist model, they served as the basis for the new state institutions as built up after 1949. The dominance of the Party thus became permanently inscribed in the structure of the PRC. The CCP regards the state as a tool of governance, and as such it is subject to regular transformations corresponding to the political objectives and the current dynamics within the Party.
Recommended publications
  • 9780367508234 Text.Pdf
    Development of the Global Film Industry The global film industry has witnessed significant transformations in the past few years. Regions outside the USA have begun to prosper while non-traditional produc- tion companies such as Netflix have assumed a larger market share and online movies adapted from literature have continued to gain in popularity. How have these trends shaped the global film industry? This book answers this question by analyzing an increasingly globalized business through a global lens. Development of the Global Film Industry examines the recent history and current state of the business in all parts of the world. While many existing studies focus on the internal workings of the industry, such as production, distribution and screening, this study takes a “big picture” view, encompassing the transnational integration of the cultural and entertainment industry as a whole, and pays more attention to the coordinated develop- ment of the film industry in the light of influence from literature, television, animation, games and other sectors. This volume is a critical reference for students, scholars and the public to help them understand the major trends facing the global film industry in today’s world. Qiao Li is Associate Professor at Taylor’s University, Selangor, Malaysia, and Visiting Professor at the Université Paris 1 Panthéon- Sorbonne. He has a PhD in Film Studies from the University of Gloucestershire, UK, with expertise in Chinese- language cinema. He is a PhD supervisor, a film festival jury member, and an enthusiast of digital filmmaking with award- winning short films. He is the editor ofMigration and Memory: Arts and Cinemas of the Chinese Diaspora (Maison des Sciences et de l’Homme du Pacifique, 2019).
    [Show full text]
  • China in 2018 Presidents, Politics, and Power
    Manuscript version: Published Version The version presented in WRAP is the published version (Version of Record). Persistent WRAP URL: http://wrap.warwick.ac.uk/114518 How to cite: The repository item page linked to above, will contain details on accessing citation guidance from the publisher. Copyright and reuse: The Warwick Research Archive Portal (WRAP) makes this work by researchers of the University of Warwick available open access under the following conditions. Copyright © and all moral rights to the version of the paper presented here belong to the individual author(s) and/or other copyright owners. To the extent reasonable and practicable the material made available in WRAP has been checked for eligibility before being made available. Copies of full items can be used for personal research or study, educational, or not-for-profit purposes without prior permission or charge. Provided that the authors, title and full bibliographic details are credited, a hyperlink and/or URL is given for the original metadata page and the content is not changed in any way. Publisher’s statement: Please refer to the repository item page, publisher’s statement section, for further information. For more information, please contact the WRAP Team at: [email protected] warwick.ac.uk/lib-publications SHAUN BRESLIN China in 2018 Presidents, Politics, and Power ABSTRACT President Xi Jinping dominated the Chinese stage during 2018, continuing to con- solidate his power as the CCP sought to reassert its primacy. China flexed its muscles as a great power in a pitch for global leadership. Xi pushed constantly to portray China as the promoter of an open global economy, even as his own continued to slow incrementally amid the widening trade war with the US.
    [Show full text]
  • SOUHRNNÁ TERITORIÁLNÍ INFORMACE Čína
    SOUHRNNÁ TERITORIÁLNÍ INFORMACE Čína Souhrnná teritoriální informace Čína Zpracováno a aktualizováno zastupitelským úřadem ČR v Pekingu (Čína) ke dni 13. 8. 2020 3:17 Seznam kapitol souhrnné teritoriální informace: 1. Základní charakteristika teritoria, ekonomický přehled (s.2) 2. Zahraniční obchod a investice (s.15) 3. Vztahy země s EU (s.28) 4. Obchodní a ekonomická spolupráce s ČR (s.30) 5. Mapa oborových příležitostí - perspektivní položky českého exportu (s.39) 6. Základní podmínky pro uplatnění českého zboží na trhu (s.46) 7. Kontakty (s.81) 1/86 http://www.businessinfo.cz/cina © Zastupitelský úřad ČR v Pekingu (Čína) SOUHRNNÁ TERITORIÁLNÍ INFORMACE Čína 1. Základní charakteristika teritoria, ekonomický přehled Podkapitoly: 1.1. Oficiální název státu, složení vlády 1.2. Demografické tendence: Počet obyvatel, průměrný roční přírůstek, demografické složení (vč. národnosti, náboženských skupin) 1.3. Základní makroekonomické ukazatele za posledních 5 let (nominální HDP/obyv., vývoj objemu HDP, míra inflace, míra nezaměstnanosti). Očekávaný vývoj v teritoriu s akcentem na ekonomickou sféru. 1.4. Veřejné finance, státní rozpočet - příjmy, výdaje, saldo za posledních 5 let 1.5. Platební bilance (běžný, kapitálový, finanční účet), devizové rezervy (za posledních 5 let), veřejný dluh vůči HDP, zahraniční zadluženost, dluhová služba 1.6. Bankovní systém (hlavní banky a pojišťovny) 1.7. Daňový systém 1.1 Oficiální název státu, složení vlády Čínská lidová republika (Zhonghua Renmin Gongheguo; zkráceně Zhongguo) Úřední jazyk čínština (Putonghua, standardní čínština založená na pekingském dialektu), dále jsou oficiálními jazyky kantonština v provincii Guangdong, mongolština v AO Vnitřní Mongolsko, ujgurština a kyrgyzština v AO Xinjiang, tibetština v AO Xizang (Tibet). Složení vlády • Prezident: Xi Jinping (v úřadu od 14.
    [Show full text]
  • China's Domestic Politics and Foreign Policy After the 19Th Party Congress
    China's Domestic Politics and Foreign Policy after the 19th Party Congress Paper presented to Japanese Views on China and Taiwan: Implications for U.S.-Japan Alliance March 1, 2018 Center for Strategic & International Studies Washington, D.C. Akio Takahara Professor of Contemporary Chinese Politics The Graduate School of Law and Politics, The University of Tokyo Abstract At the 19th Party Congress Xi Jinping proclaimed the advent of a new era. With the new line-up of the politburo and a new orthodox ideology enshrined under his name, he has successfully strengthened further his power and authority and virtually put an end to collective leadership. However, the essence of his new “thought” seems only to be an emphasis of party leadership and his authority, which is unlikely to deliver and meet the desires of the people and solve the contradiction in society that Xi himself acknowledged. Under Xi’s “one-man rule”, China’s external policy could become “soft” and “hard” at the same time. This is because he does not have to worry about internal criticisms for being weak-kneed and also because his assertive personality will hold sway. Introduction October 2017 marked the beginning of the second term of Xi Jinping's party leadership, following the 19th National Congress of the Chinese Communist Party (CCP) and the First Plenary Session of the 19th Central Committee of the CCP. Although the formal election of the state organ members must wait until the National People's Congress to be held in March 2018, the appointees of major posts would already have been decided internally by the CCP.
    [Show full text]
  • Issue 1 2015
    ISSUE 1 · 2015 《中国人大》对外版 NPC National People’s Congress of China THE NATIONAL PEOPLE’S CONGRESS ADVANCES RULE OF LAW Ethnic minority deputies wave farewell on March 15 when the Third Session of the 12th National People’s Congress (NPC) comes to an end at the Great Hall of the People in Beijing. Chen Wen The National People’s Congress 6 advances rule of law Contents Special Report 15 Streamlining administration is 25 ‘Internet Plus’ to fuel innova- government’s self-reform tion, development 6 The National People’s Congress 16 China sanguine on economy advances rule of law under new normal Diplomacy and Defense Report on the work of the Stand- 8 18 Pooling strength on ing Committee of the National Peo- 26 China eyes bigger global role ‘Belt and Road’ strategy ple’s Congress (excerpts) with Chinese solutions Free trade zone strategy in Zhang Dejiang stresses imple- 22 28 Defense budget 2015 lowest 13 speedy implementation mentation of ‘Four Comprehensives’ growth in 5 years 23 Prudent monetary policy still Judicial Reform in place Reform and Development China vows harsher punish- 23 Fertile soil provided for foreign 29 ment for corruption, terrorism investment 14 Slower growth target, tough- er environmental protection benefit Self-reproach is the right atti- Yuan’s full convertibility to 31 China and the world 24 tude to advance judicial reform advance 16 China sanguine on economy under new normal 8 Report on the work of the 18 Standing Committee of the Pooling strength on National People’s Congress (excerpts) ‘Belt and Road’ strategy ISSUE
    [Show full text]
  • China's Dual Circulation Economy
    THE SHRINKING MARGINS FOR DEBATE OCTOBER 2020 Introduction François Godement This issue of China Trends started with a question. What policy issues are still debated in today’s PRC media? Our able editor looked into diff erent directions for critical voices, and as a result, the issue covers three diff erent topics. The “dual circulation economy” leads to an important but abstruse discussion on the balance between China’s outward-oriented economy and its domestic, more indigenous components and policies. Innovation, today’s buzzword in China, generates many discussions around the obstacles to reaching the country’s ambitious goals in terms of technological breakthroughs and industrial and scientifi c applications. But the third theme is political, and about the life of the Communist Party: two-faced individuals or factions. Perhaps very tellingly, it contains a massive warning against doubting or privately minimizing the offi cial dogma and norms of behavior: “two-faced individuals” now have to face the rise of campaigns, slogans and direct accusations that target them as such. In itself, the rise of this broad type of accusation demonstrates the limits and the dangers of any debate that can be interpreted as a questioning of the Party line, of the Centre, and of its core – China’s paramount leader (领袖) Xi Jinping. The balance matters: between surviving policy debates on economic governance issues and what is becoming an all-out attack that targets hidden Western political dissent, doubts or non-compliance beyond any explicit form of debate. Both the pre-1949 CCP and Maoist China had so-called “line debates” which science has seen this often turned into “line struggles (路线斗争)”: the offi cial history of the mostly as a “fragmented pre-1966 CCP, no longer reprinted, listed nine such events.
    [Show full text]
  • 2019 China Military Power Report
    OFFICE OF THE SECRETARY OF DEFENSE Annual Report to Congress: Military and Security Developments Involving the People’s Republic of China ANNUAL REPORT TO CONGRESS Military and Security Developments Involving the People’s Republic of China 2019 Office of the Secretary of Defense Preparation of this report cost the Department of Defense a total of approximately $181,000 in Fiscal Years 2018-2019. This includes $12,000 in expenses and $169,000 in DoD labor. Generated on 2019May02 RefID: E-1F4B924 OFFICE OF THE SECRETARY OF DEFENSE Annual Report to Congress: Military and Security Developments Involving the People’s Republic of China OFFICE OF THE SECRETARY OF DEFENSE Annual Report to Congress: Military and Security Developments Involving the People’s Republic of China Annual Report to Congress: Military and Security Developments Involving the People’s Republic of China 2019 A Report to Congress Pursuant to the National Defense Authorization Act for Fiscal Year 2000, as Amended Section 1260, “Annual Report on Military and Security Developments Involving the People’s Republic of China,” of the National Defense Authorization Act for Fiscal Year 2019, Public Law 115-232, which amends the National Defense Authorization Act for Fiscal Year 2000, Section 1202, Public Law 106-65, provides that the Secretary of Defense shall submit a report “in both classified and unclassified form, on military and security developments involving the People’s Republic of China. The report shall address the current and probable future course of military-technological development of the People’s Liberation Army and the tenets and probable development of Chinese security strategy and military strategy, and of the military organizations and operational concepts supporting such development over the next 20 years.
    [Show full text]
  • The Old Master
    INTRODUCTION Four main characteristics distinguish this book from other translations of Laozi. First, the base of my translation is the oldest existing edition of Laozi. It was excavated in 1973 from a tomb located in Mawangdui, the city of Changsha, Hunan Province of China, and is usually referred to as Text A of the Mawangdui Laozi because it is the older of the two texts of Laozi unearthed from it.1 Two facts prove that the text was written before 202 bce, when the first emperor of the Han dynasty began to rule over the entire China: it does not follow the naming taboo of the Han dynasty;2 its handwriting style is close to the seal script that was prevalent in the Qin dynasty (221–206 bce). Second, I have incorporated the recent archaeological discovery of Laozi-related documents, disentombed in 1993 in Jishan District’s tomb complex in the village of Guodian, near the city of Jingmen, Hubei Province of China. These documents include three bundles of bamboo slips written in the Chu script and contain passages related to the extant Laozi.3 Third, I have made extensive use of old commentaries on Laozi to provide the most comprehensive interpretations possible of each passage. Finally, I have examined myriad Chinese classic texts that are closely associated with the formation of Laozi, such as Zhuangzi, Lüshi Chunqiu (Spring and Autumn Annals of Mr. Lü), Han Feizi, and Huainanzi, to understand the intellectual and historical context of Laozi’s ideas. In addition to these characteristics, this book introduces several new interpretations of Laozi.
    [Show full text]
  • Four Comprehensives
    2019 5th International Conference on Economics and Management (ICEM 2019) ISBN: 978-1-60595-634-3 Leading the New Normal by “Four Comprehensives” in Innovation and Entrepreneurship Education at Institutions of Higher Learning Han-Yue KANG Yingkou Institute of Technology, Yingkou Liaoning, Shenyang Province, China [email protected] Keywords: “Four Comprehensives’, Innovation and Entrepreneurship Education in Institutions of Higher Learning, University Student, New Normal. Abstract. The strategic blueprint of “four comprehensives” centrally embodies the strategic thought of the Party Central Committee for the governance of China since the 18th National Congress of the Communist Party of China. It is an important guideline for behavior for quickening construction of an innovative type country and promoting steady growth of economy to clearly understand the inexorable trend of reform in innovation and entrepreneurship education at institutions of higher learning, and lead the new normal in innovation and entrepreneurship education in institutions of higher learning under the instruction of “four comprehensives”. Introduction Since the 18th National Congress of the Communist Party of China, general secretary Xi Jinping successively put forward the strategic blueprint of “four comprehensives”, i.e., comprehensively building a moderately prosperous society, comprehensively deepening reform, comprehensively governing the country according to law and comprehensively enforcing strict party discipline, pointing out the direction for advancing in attaining
    [Show full text]
  • Congressional-Executive Commission on China Annual Report 2019
    CONGRESSIONAL-EXECUTIVE COMMISSION ON CHINA ANNUAL REPORT 2019 ONE HUNDRED SIXTEENTH CONGRESS FIRST SESSION NOVEMBER 18, 2019 Printed for the use of the Congressional-Executive Commission on China ( Available via the World Wide Web: https://www.cecc.gov VerDate Nov 24 2008 13:38 Nov 18, 2019 Jkt 036743 PO 00000 Frm 00001 Fmt 6011 Sfmt 5011 G:\ANNUAL REPORT\ANNUAL REPORT 2019\2019 AR GPO FILES\FRONTMATTER.TXT CONGRESSIONAL-EXECUTIVE COMMISSION ON CHINA ANNUAL REPORT 2019 ONE HUNDRED SIXTEENTH CONGRESS FIRST SESSION NOVEMBER 18, 2019 Printed for the use of the Congressional-Executive Commission on China ( Available via the World Wide Web: https://www.cecc.gov U.S. GOVERNMENT PUBLISHING OFFICE 36–743 PDF WASHINGTON : 2019 VerDate Nov 24 2008 13:38 Nov 18, 2019 Jkt 036743 PO 00000 Frm 00003 Fmt 5011 Sfmt 5011 G:\ANNUAL REPORT\ANNUAL REPORT 2019\2019 AR GPO FILES\FRONTMATTER.TXT CONGRESSIONAL-EXECUTIVE COMMISSION ON CHINA LEGISLATIVE BRANCH COMMISSIONERS House Senate JAMES P. MCGOVERN, Massachusetts, MARCO RUBIO, Florida, Co-chair Chair JAMES LANKFORD, Oklahoma MARCY KAPTUR, Ohio TOM COTTON, Arkansas THOMAS SUOZZI, New York STEVE DAINES, Montana TOM MALINOWSKI, New Jersey TODD YOUNG, Indiana BEN MCADAMS, Utah DIANNE FEINSTEIN, California CHRISTOPHER SMITH, New Jersey JEFF MERKLEY, Oregon BRIAN MAST, Florida GARY PETERS, Michigan VICKY HARTZLER, Missouri ANGUS KING, Maine EXECUTIVE BRANCH COMMISSIONERS Department of State, To Be Appointed Department of Labor, To Be Appointed Department of Commerce, To Be Appointed At-Large, To Be Appointed At-Large, To Be Appointed JONATHAN STIVERS, Staff Director PETER MATTIS, Deputy Staff Director (II) VerDate Nov 24 2008 13:38 Nov 18, 2019 Jkt 036743 PO 00000 Frm 00004 Fmt 0486 Sfmt 0486 G:\ANNUAL REPORT\ANNUAL REPORT 2019\2019 AR GPO FILES\FRONTMATTER.TXT C O N T E N T S Page I.
    [Show full text]
  • China's New Finance Minister Faces a Juggling
    ChinaŇs New Finance Minister Faces a Juggling Act - Bloomberg 161212 Ӥ܌1:46 China’s New Finance Minister Faces a Juggling Act Bloomberg News November 7, 2016 — 11:01 AM EST ➞ Reallocation of revenue underway as local governments curbed ➞ Loss of reformer Lou a ‘big deal,’ says China watcher Naughton China’s new finance minister Xiao Jie inherits from his reformist predecessor a plan to rein in local authorities’ profligate ways without derailing growth in the world’s No. 2 economy. Xiao, 59, previously a senior aide to Premier Li Keqiang, will replace 65- year-old Lou Jiwei, who held the job for a little more than three years, according to an official Xinhua News Agency report Monday. There was no news on what post, if any, Lou will go on to take. The change probably won’t have much impact on fiscal policy, according to Citigroup Inc. Lou restructured local-government finances to reduce the cost of a record amount of debt run up by provinces after the global financial crisis. But his plans to clamp down on spending ran into opposition as they collided with ᶭ҂ 4 وhttps:www.bloomberg.comnewsarticles2016-11-07china-s-new-finance-minister-faces-fiscal-fix-in-juggling-act ᒫ 1 ᶭҁ ChinaŇs New Finance Minister Faces a Juggling Act - Bloomberg 161212 Ӥ܌1:46 the weakest growth in a quarter of a century. Xiao now takes up the baton at a time monetary policy has switched to neutral, leaving the economy more reliant on fiscal support. "Xiao comes in at a critical moment for China’s fiscal reform," said Jin Dongsheng, a former researcher at an institute under the State Administration of Taxation.
    [Show full text]
  • China's Logistics Capabilities for Expeditionary Operations
    China’s Logistics Capabilities for Expeditionary Operations The modular transfer system between a Type 054A frigate and a COSCO container ship during China’s first military-civil UNREP. Source: “重大突破!民船为海军水面舰艇实施干货补给 [Breakthrough! Civil Ships Implement Dry Cargo Supply for Naval Surface Ships],” Guancha, November 15, 2019 Primary author: Chad Peltier Supporting analysts: Tate Nurkin and Sean O’Connor Disclaimer: This research report was prepared at the request of the U.S.-China Economic and Security Review Commission to support its deliberations. Posting of the report to the Commission's website is intended to promote greater public understanding of the issues addressed by the Commission in its ongoing assessment of U.S.-China economic relations and their implications for U.S. security, as mandated by Public Law 106-398 and Public Law 113-291. However, it does not necessarily imply an endorsement by the Commission or any individual Commissioner of the views or conclusions expressed in this commissioned research report. 1 Contents Abbreviations .......................................................................................................................................................... 3 Executive Summary ............................................................................................................................................... 4 Methodology, Scope, and Study Limitations ........................................................................................................ 6 1. China’s Expeditionary Operations
    [Show full text]