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CHINA SELECTS AS NEW LEADER

Chinese Communist Party unveiled its new ruling elite on November 15, 2012 with Xi Jinping certain to take over as President in March 2013. Li Keiqiang will be the new Prime Minister. Xi Jinping, the 59- year-old "princeling" son of a former Politburo member, was on November 15, 2012 pronounced the Genera! Secretary of the Communist Party of China (CPC) and the head of the party's Central Military Commission, marking an end to a once-in-a- decade leadership transition process institutionalized in 2002. Xi will become China's next president in March 2013 while set the important precedent of not retaining military leadership after retirement, reducing scope for future leaders to influence party functioning well into their old age.

Hu's decision to fade out and refuse CMC leadership after retirement in March 2013 will greatly assist Xi, who will be able to wield absolute control in tackling the big challenges that include, apart from the economy, corruption and the Tibetan turmoil, tense dealings with Japan over disputed islands and China's tug-of- war with the United States.

Mr. Xi and six other leaders, to constitute the Party's highest body — the Politburo Standing Committee (PBSC) — were presented as the faces of the next generation of leaders, as outgoing leader Hu Jintao relinquished his posts as Head of the CPC and Chairman of the military.

The Party has reduced the size of its elite inner circle from nine to seven, underscoring long-discussed moves, to make the top body more efficient and nimble, and less riven by competing factional interests seen as stalling reform moves.

The composition of the PBSC was along expected lines, filled by four officials close to former leader and two others who rose under outgoing General Secretary Hu Jintao.

This reflects the continuing influence the two leaders will wield from behind the scenes even as Mr. Xi, known as a moderate, pragmatic and consensus-building leader, looks to make his mark. Mr. Hu will continue serving as President until March 2013.

Mr. Xi was flanked by second-ranked (57), who will take over as Premier when steps down at the March Parliament session.

The other members, in order of rank, were announced as: (66), Chongqing Party Secretary; (67), Shanghai Party Secretary; Liu Yunshan (65), a senior propaganda offi-cial; (64), a Vice Premier in charge of economic affairs and (66), Party Secretary in Tianjin.

The selection of the seven leaders and the 25-member Politburo was approved at a meeting of the newly appointed 376-member 18th Central Committee, which was chosen at the closing session of the week-long National Congress on November 14, 2012. The approval was seen as a formality, with the list of leaders thought to be finalised after months of bargaining among the Party's various interest groups. Mr. Hu and Mr. Jiang have both been pushing for their allies to secure posts.

In his first speech as the head of the Party, Mr. Xi thanked the CPC for the trust placed in the new leadership and spoke of "severe challenges" the new generation of leaders will face. He made three references in his brief address

to "the great renewal of the Chinese nation" and the Party's role in China's revival, suggesting that the theme — popular with Chinese nationalists — might emerge as a rallying point under his leadership as the CPC looks for ways to renew its legitimacy amid rising concerns on inequality and corruption.

Princelings Dominate: That Xi Jinping, General Secretary of the Communist Party of China, began his term with a call for unity underscores the leadership's need to close ranks as it grapples with a range of challenges, from tackling corruption and bringing about more balanced growth. In recent months, the Party has been preoccupied with intense bargaining among competing groups pushing for their allies to secure top posts.

Competition for the seven posts on the Politburo Standing Committee (PBSC) - the elite inner circle which decides everything from economic matters to foreign policy—has been particularly fierce, with both outgoing General Secretary Hu Jintao and his predecessor Jiang Zemin looking to install their favored candidates. Four of the top seven leaders are known in China as "" — the relatives of former leaders who are seen as having particularly close ties to Mr. Jiang. Besides Mr, Xi (59), third-ranked Zhang De-jiang (66), the Chongqing Party Secretary; fourth-ranked Yu Zhengsheng (67), the Shanghai Party Secretary; and sixth-ranked Wang Qishan (64), who will head the party's internal disciplinary body, are all princelings.

While they are by no means an organised grouping and differ both in their allegiances and outlook, their presence in the top body reflects the continuing influence of a select group of "revolutionary families'' — the descendants of first-generation CPC revolutionaries who now occupy positions of influence, both in the Party and in lucrative State-run companies.

Last Steps in a Tight Choreography: The Communist Party of China (CPC) on November 14, 2012 selected a new Central Committee, marking the end of Hu Jintao's 10-year term as General Secretary and paving the way for unveiling of the new top leadership.

The CPC concluded its once-in-five year National Congress after the 2,300 or so delegates cast secret ballots to choose the party's 18th Central Committee, which will comprise 205 members and 171 alternates - who do not have voting rights - and will remain in power until 2017.

The National Congress also approved amendments to the Party Constitution. Cementing Mr. Hu's legacy, the Congress passed a resolution including his doctrine, called the "Scientific Outlook on Development," which stresses balanced growth, in the text.

Another amendment called upon the party to "attach greater importance to conducting oversight of cadres," reflecting rising concerns on the rampant corruption even within the party's highest ranks, exposed by the purge of the former Politburo member, , in September 2012.

The Communist Party of China's (CPC) once-in-five-years National Congress ended on November 14, 2012 in Beijing and was, like much of the week-long gathering, a tightly choreographed affair. As the carefully selected 2,268 delegates gathered in Beijing's Great Hall of the People for one last time, it was apparent that the Party was leaving little to chance while handing over the reins of the world's second-largest economy to the sixth generation of its leadership.

Outgoing General Secretary Hu Jintao will continue as President till March 2013, when Parliament will convene for its annual session. This will give his anointed successor, Vice-president Xi Jinping, some time to come to grips with heading the 81-million-strong Party before taking over matters of government.

While, in theory, the 2,268 delegates as "people's representatives" can contest and question any decision taken by the Central Committee, every resolution that was put forward on November 14, 2012 was passed unanimously , without a single dissenting vote. From approving the work report of the outgoing 17th Central Committee to selecting a new Central Commission for Discipline Inspection (CCDI) - the Party's powerful internal disciplinary body — every single delegate raised her or his hand to endorse every decision.

The selection process of the new Central Committee also threw up no surprises: the 10 current Politburo members seen as contenders for spots on the next Politburo Standing Committee (PBSC) — were all selected among its 205 full members. Besides Mr. Xi and Vice-Premier Li Keqiang — eight Politburo members vying for a spot on the top body were chosen. They included four officials who rose through the Communist Youth League, where Mr. Hu has allies: head of the Organisation Department , top propaganda official Liu Yunshan, Guangdong Party Secretary and State Councillor , the only female member of the current Politburo. Three officials close to former President Jiang Zemin were also selected.

As Mr. Hu announced the end of the Congress — and his ten-year term at the helm of the party - he hinted at the enormous challenges his successors will face, including rising corruption, social inequality, transforming China's economic model and environmental challenges, issues that were reflected in amendments to the Party Constitution.

Mr. Hu presided over a decade of rapid economic growth, which made China the world's second-largest economy and raised per capita incomes five fold. He left office stressing that the party would continue with its emphasis on development, pledging to double incomes by 2020. The Hu Jintao decade emphasized stability above all else. Even as the Chinese economy continued to grow, weathering the recession, the party maintained firm political control, showing little tolerance for dissent. Indeed, in his final address as party chief— he will continue as President until March 2013 — Mr. Hu stressed that China "would never copy a Western political system."

The outgoing General Secretary also warned his successor that failure to tackle rampant corruption could "even cause the collapse of the party and the fall of the state." Yet, despite the obvious link between corruption and the absence of political accountability, the party under Mr. Hu did little to push forward meaningful reforms. The purge of former Politburo member Bo Xilai, who will soon stand trial on corruption charges, embarrassed the party, re- vealing how one of its most powerful leaders amassed a fortune and held scant regard for the law. Corruption is only one of several challenges confronting Mr. Xi. As the new General Secretary himself put it in ' his first public remarks, the party faces "many pressing problems," starting with its officials being increasingly "out of touch with the people." Mr. Xi said he would prioritize addressing the demands of the public for better education, greater social security, improved health care and a cleaner environment. The CPC continues to enjoy wide legitimacy after presiding over two decades of economic growth. However, anger against local-level corruption is on the rise, sparking tens of thousands of protests every year. China is also facing an urgent challenge of delivering more balanced growth. The urban-rural income gap today is 68 per cent higher than it was in 1985. The transformation of China's economic model away from state-driven export-led growth will also require difficult measures to curtail the rising influence of state-owned companies. If the party is to address these challenges effectively, it is clear that the leadership under Mr. Xi will have to be far bolder than the previous generation of leaders, both in thought and in action.