Posts tagged ‘communist party of china’

26/01/2015

China’s Xi Builds Support for Big Move: Putting Politics Ahead of the Economy – China Real Time Report – WSJ

Many observers—including U.S. President Barack Obama – claim that Chinese leader Xi Jinping has already consolidated his political power and now commands more authority at a far earlier point than his predecessors did when they ruled China.

On the surface, there seems to be ample evidence for this conclusion. In his first two years at the helm, Xi has taken out powerful political rivals, become a ubiquitous presence in the party media and put himself in a position to dominate policy making.

There’s also been unusual attention in the press to Xi’s experiences as an adolescence and his early days as a Communist party member, which praise Xi’s stamina as a sent-down youth (in Chinese) and his problem-solving talents as a cadre (in Chinese). Chinese media refer to China’s president colloquially as “Big Daddy Xi” and extol his visits and musings as major events. And last week, a series of oil paintings were unveiled on the website of the Ministry of Defense depicting Xi in his role as China’s paramount leader.

This hagiography seems to suggest Xi’s unassailable status.But there’s a better explanation for this relentless publicity: Because Xi’s embarking on a very different path for China, he needs all the positive promotion he can get.

Xi knows as well as anyone that governance in China has shifted. The move away from a Maoist-style dictatorship to a collective leadership means that only by enacting and implementing reforms can a Chinese leader stay upright and ahead politically. It’s authority over policy decisions–not power for its own sake–that drives China’s leaders.

For much of the last half-century, changing China through economic reform seemed to make far better sense than transforming the country through political revolution.

Deng Xiaoping, the chief architect of China’s economic transformation, changed the national focus to getting rich and kept conservative critics at bay; his successor, Jiang Zemin, extended Deng’s achievements by bringing businessmen into the Communist Party and ushering China further into the international economic order. Hu Jintao, who followed Jiang, concentrated on the parts of China’s population left behind by a booming economy—and worked to underwrite those officials who agreed with that approach.

Then along came Xi, looking to invert this equation—to put politics back in command of economics.

In Xi’s view, China’s economic boom hasn’t always enhanced the party’s image, because it’s also offered opportunities for government officials to engage in graft. The Communist Party’s previous emphasis on economics wasn’t the cure so much as part of a larger disease that made too many officials more concerned with growing their bank accounts instead of developing the country. The state of China’s GDP may be a major concern for some, but Xi’s focus on getting the party rectified first indicates that he disagrees. For Xi, only by pushing economics aside and focusing on politics—specifically, ideology–can party rule be protected.

In recent days, Xi and his supporters have been advertising ideology to supplant economics more ardently.

For example, instead of asking China’s universities to become engines of innovation that might invigorate economic growth, Xi and his comrades are seeking to enforce the Party’s control over the classroom.

Xinhua summarized a recent proposal to tighten ideological oversight, quoting a document instructing administrators, that “higher education is a forward battlefield in ideological work, and shoulders the important tasks of studying, researching and spreading Marxism, along with nurturing and carrying forward socialist values.”

The party main theoretical journal, Qiushi, jumped in with a widely-reprinted essay (in Chinese) that slammed those professors who “as part of some new fashion, use their positions of authority to discredit China.” These instructors, the commentary contended, “present views that are not part of the social mainstream.”

Others are also under pressure to bend to politics.

The China Law Society was told last week, according to one report, to “improve its decision-making advisory service to establish itself as a key think tank [by placing] more emphasis on collective thoughts rather than individual thinking.”

That’s a signal to institutions that are largely under party oversight to forego suggestions that hint at dissent and get back in line.

And a few days earlier, People’s Daily, the party’s flagship newspaper, sounded the same refrain of increasing ideological oversight of officials who might be still skeptical of Xi’s changes, devoting an entire page of its Tuesday edition to the need for “political discipline,” with one essay stating emphatically (in Chinese) that “without rules, there are no standards; without standards, a political party cannot exist.”

That sort of talk inspires politically conservative cadres who enjoy their reform in the shape of smackdowns. And building a high public profile is Xi’s way of saying to cadres and citizens alike that he’s the best man to prove that China needs politics to push economics.

via China’s Xi Builds Support for Big Move: Putting Politics Ahead of the Economy – China Real Time Report – WSJ.

24/01/2015

China’s Risks in Shedding Debt-Fueled, Investment-Led Growth – Businessweek

Few Chinese leaders are as revered as Deng Xiaoping. His late-1970s modernization drive led to an unrivaled run of high-speed growth. Chinese President Xi Jinping, who has big reform ambitions of his own, often evokes the memory of the paramount leader, who died in 1997. In 2012, shortly before he assumed the top government job, Xi signaled his own liberalization agenda by retracing Deng’s famous tour in 1992 of southern Guangdong province to promote economic reform. Last August, in a speech marking the 110th anniversary of the revolutionary leader’s birth, Xi, like his predecessors, recycled Deng-era slogans such as “socialism with Chinese characteristics.”

Is China Coming Down to Earth?

Deng’s legacy as the architect of Chinese modernity rides on a record of 10 percent average annual growth from 1980 through 2012. Xi oversees an economy that’s decelerating and that grew 7.4 percent in 2014, the weakest performance since 1990, when it grew 3.8 percent. The International Monetary Fund predicts that Chinese expansion will steadily decline to 6.8 percent this year and 6.3 percent in 2016, when archrival India is expected to eclipse China at 6.5 percent. All of which raises a question unthinkable a few years ago: Is the China growth miracle winding down for good?

China’s transformation from an agrarian backwater to a $9.2 trillion economy with globally competitive companies, including Xiaomi, Huawei, Baosteel, and Alibaba, has been remarkable. And plenty of countries would be thrilled with 6 percent growth. Yet China is also home to income inequality on par with that of Nigeria and Mexico, a rapidly aging populace, and a world-class environmental crisis. Years of politically driven investment with diminishing returns have led to too much debt and industrial overcapacity, as well as ghost cities with unfinished hotels and absurd ambitions. (You can soon visit Tianjin’s replica of Manhattan, provided you like your replica cities free of actual humans.) Loose credit conditions contributed to an unsustainable six-month, 63 percent stock price increase, prompting regulatory authorities on Jan. 19 to order the nation’s three biggest brokerages to stop adding new margin-trading accounts. The Shanghai Composite index tumbled 7.7 percent on Jan. 19, the biggest one-day drop since the financial crisis in 2008.

The total debt of the world’s No. 2 economy is roughly $18 trillion, or about 200 percent of GDP

China’s investment spending binge is packing less of a punch than it used to, according to the World Bank. From 1991 to 2011, it took $3.60 of investment to generate $1 of GDP growth. At the end of 2012 it required $5.40. Meanwhile, the country’s total debt—government, corporate, and household—is now roughly $18 trillion, or about 200 percent of total gross domestic product. “We’ve got the biggest debt bubble that the world has ever seen, and credit is continuing to grow [about] twice as fast” as the Chinese economy, says credit analyst Charlene Chu, a partner with Autonomous Research Asia in Hong Kong. Chinese officialdom is keenly aware of the problem. The growth model that delivered productivity spurts in the late 1990s—powered by reforms of state-owned enterprises and new technology brought in by foreign investors after the country’s admission into the World Trade Organization in the early 2000s—has lost its edge. As early as 2007, China’s then-Premier Wen Jiabao described his economy to the National People’s Congress as “unstable, unbalanced, uncoordinated, and unsustainable.”

Michael Pettis, a finance professor at the Guanghua School of Management at Peking University, says the Chinese experience has much in common with Brazil in the 1960s, the Soviet Union in the 1970s, and Japan in the 1980s. All resorted to what economists call the financial repression of households to accelerate development. Family savings were channeled primarily into bank accounts with regulated and below-market deposit rates. Banks then recycled the capital into low-interest loans for businesses to build factories at home and to export abroad.

When it works, and it did stupendously for China, the economy hits the fast lane and incomes grow so fast that consumers don’t mind getting low returns on their savings—or being ruled by an unaccountable one-party state. Unfortunately, research by Pettis shows, “every investment-led growth miracle in the last 100 years has broken down.”

Xi and Premier Li Keqiang are trying to avoid that fate by guiding China onto a more sustainable path that would bolster the role of consumer spending (about 34 percent of GDP, vs. 68 percent in the U.S. in 2013, the World Bank reports) and shift the economy to a more services-oriented model. They say they’ve mapped out more than 300 reforms that over time will reduce state intervention in the economy and energy price controls that favor manufacturers; the changes will also improve the social safety net and encourage market-driven deposit rates to get Chinese families saving less and spending more.

via China’s Risks in Shedding Debt-Fueled, Investment-Led Growth – Businessweek.

20/01/2015

Tapping China’s ‘Silver Hair Industry’ – China Real Time Report – WSJ

Researchers at Abbott Laboratories in Shanghai are busy testing flavors of nutritional drinks for China’s senior citizens. Kimberly-Clark Corp. has launched television ads for its Depend adult diapers and expanded distribution online. Local e-commerce companies like Alibaba Group Holding Ltd. and JD.com Inc. are rolling out senior-focused marketing pushes.

The companies are after the growing ranks of people born during a Mao Zedong-inspired baby boom that took the country’s population to nearly one billion people in 1980 from 542,000 in 1949. China’s birthrate dropped sharply during the 1970s and 1980s as the government reversed course and implemented a one-child policy.

The boomers are now hitting old age: China’s over-65 population is projected to soar to 210 million in 2030 from 110 million, and by 2050 will account for a quarter of China’s total population, according to United Nations data. By then, the U.N. says, China’s elderly population may exceed the entire U.S. population.

“What has us interested…is that half a billion people over the age of 60 will be living in China over the next 35 years,” said Scott White, president of Abbott’s international nutrition division.

via Tapping China’s ‘Silver Hair Industry’ – China Real Time Report – WSJ.

19/12/2014

Xi Jinping Wins the Popularity Contest – Businessweek

A recent survey on the popularity of global leaders is providing rich fodder for the Communist Party of China’s propaganda machine. The study, which canvassed some 26,000 people in 30 countries on their attitudes toward 10 world leaders, shows President Xi Jinping was rated higher by the people of China than any other leader in the survey was rated by the people of his or her respective country.

Chinese President Xi Jinping

Chinese President Xi Jinping was the highest-rated world leader in many fields,” China Daily reported on Wednesday, commenting on the study (PDF), which was published by the Ash Center for Democratic Governance and Innovation at the Harvard Kennedy School and carried out by Japanese research firm GMO. “Chinese respondents showed the highest confidence in regards to how their leader handled domestic and international affairs.”

Among the national rankings, where people rate their own leader, Xi averaged 9 out of 10, higher than any other head of state, with 94.8 percent of Chinese expressing confidence about how he handles domestic affairs and 93.8 percent saying the same about international affairs.

Xi was followed by Russian President Vladimir Putin (8.7), Indian Prime Minister Narendra Modi (8.6), South African President Jacob Zuma (7), and German Chancellor Angela Merkel (6.7). U.S. President Barack Obama came in seventh place, with only a 6.2 ranking. Just 51.7 percent of Americans were confident about Obama’s handling of domestic affairs, while 49.1 percent said the same regarding international affairs.

But while Xi’s high popularity is getting lots of attention in China’s party-controlled press, the possible reasons behind it are not. Leaders in countries that hold a high degree of state control over the media would naturally rate higher, the Harvard study says, a conclusion ignored by China Daily and other Chinese publications.

via Xi Jinping Wins the Popularity Conest – Businessweek.

16/12/2014

China jails businesswoman in railway graft case for 20 years | Reuters

A court in China sentenced a well-known businesswoman to 20 years in jail for corruption on Tuesday, saying the woman with ties to a disgraced former railways minister was guilty of bribery and illegally running a business.

Ding Yuxin, also known as Ding Shumiao, helped 23 businesses win railway construction contracts and funnelled 49 million yuan (£5 million) worth of kickbacks to former railways minister Liu Zhijun, state media has previously reported.

She also “offered sexual favours to Liu by arranging an unidentified number of women for him”, the official China Daily reported last year.

In a brief statement on its microblog, a Beijing court said the evidence in the case against her was clear, ordering she also pay a fine of 2.5 billion yuan and have assets worth 20 million yuan confiscated.

It gave no other details.

via China jails businesswoman in railway graft case for 20 years | Reuters.

14/12/2014

China Has a ‘New Normal’ Too – Businessweek

China’s Communist Party leaders are known for their turgid jargon, much of it dating back decades to when Mao Zedong still dominated dogma. But sometimes, apparently, they feel the need to borrow from less hoary, more capitalistic sources.

A technology and manufacturing facility in Shenzhen, China

That is what Xi Jinping has done with his “new normal” theory of the Chinese economy, now getting lots of play in the state media. The phrase, first popularized by Pacific Investment Management Co., or Pimco, the giant Newport Beach (Calif) bond fund manager, referred of course to the lackluster economic growth following the global financial crisis.

Earlier this year Xi used the then-already tired cliché while on a May inspection trip to Henan, the province southwest of the Chinese capital. Then it got a real airing during a speech he gave at the Asia-Pacific Economic Cooperation Forum last month. “A new normal of China’s economy has emerged with several notable features,” Xi said, speaking before more than 1,500 global business executives in Beijing, reported the Party-owned Global Times on Nov. 10.

“First, the economy has shifted gear from the previous high speed to a medium-to-high-speed growth. Second, the economic structure is constantly improved and upgraded. Third, the economy is increasingly driven by innovation instead of input and investment,” the paper wrote, paraphrasing Xi.

Translation: Yes, the economy will not grow at the hyper rates all of you had gotten used to—still, no need for alarm. We are making the transition to a healthier, more sustainable version, this one driven more by consumption, services, and, oh yes, innovation. “The ‘new normal’ theory elaborated by Chinese President Xi Jinping would be one of the hallmarks to be engraved in history,” the Global Times ambitiously predicted.

“We must understand the new normal, adjust to the new normal, and develop under the new normal—coming to terms with the new normal will be the ‘main logic’ for economic growth for some time,” the official Xinhua News Agency wrote today, in a report on the three-day, high-level Central Economic Work Conference that closed Thursday. “The new normal has not changed the strategic importance of a period that will see great achievements,” it promised.

via China Has a ‘New Normal’ Too – Businessweek.

14/12/2014

China to place permanent anti-graft teams in major departments | Reuters

The corruption watchdog of China’s ruling Communist Party will establish permanent offices in some of the country’s most important party and government departments, state media said on Friday, as part of a sweeping campaign against graft.

Teams will be based in the cabinet office and parliament, as well as the party’s powerful organization department, which oversees personnel decisions, propaganda department and United Front Work Department, which deals with non-Communists, the official Xinhua news agency said.

While numerous corruption inspection teams have fanned out across the country in recent months, this is the first time such offices have been placed in crucial arms of the government, and paves the way for similar permanent offices.

via China to place permanent anti-graft teams in major departments | Reuters.

12/12/2014

China opens key section of massive water project | Reuters

China on Friday opened a key section of a massive and ambitious plan to transport water from wetter central and southern parts of the country up to its arid north, including the capital Beijing, state media reported.


Embed from Getty Images

The $62 billion undertaking – dreamed up by former Communist Party leader Mao Zedong in the 1950s – is designed to supply China’s parched and pollution-ridden north, home to more than 300 million people and countless water-intensive businesses.

The latest section opened begins at Danjiangkou reservoir in central China’s Hubei province and runs for 1,432 km (890 miles), the official Xinhua news agency reported.

It can supply on average 9.5 billion cubic meters of water annually for about 100 million people in places like Beijing, Tianjin and the nearby provinces of Henan and Hebei, Xinhua said.

Some provinces in northern China have less freshwater per person than the desert countries of the Middle East. Of the country’s total, water-intensive industries such as clothing and electronics manufacturing consume a quarter – a share the think-tank 2030 Water Resources Group expects to grow to a third by 2030.

The first stage of China’s south-to-north transfer brought water to the industry-heavy northeast, but it was barely useable when it reached Tianjin because it picked up pollutants and sediment while flowing north through polluted soil.

That has raised concerns about the latest phase – a decade in the making – bringing water via a different, less polluted route.

Some experts have also voiced concern that the project’s extensive tapping of water from the Yangtze River and its tributaries may damage one of China’s most important water ways.

via China opens key section of massive water project | Reuters.

10/12/2014

Former top planning official jailed for life in China over graft | Reuters

The former deputy head of China’s top planning agency was jailed for life on Wednesday over a bribery scandal that exposed graft at the highest levels of China’s government, and ensnared several companies including Toyota Motor Corp.

Liu Tienan, then deputy chairman of China's National Development and Reform Commission (NDRC), attends a news conference in Beijing in this February 27, 2009 file photograph. Liu, a deputy chairman of China's top planning agency, the National Development and Reform Commission (NDRC), is under investigation for suspected ''serious discipline violations'', state media said on 12 May, 2013, REUTERS/Stringer/Files

The sentence, handed down by a court just outside of Beijing, capped the downfall of Liu Tienan, who was sacked as deputy head of the National Development and Reform Commission (NDRC) last year, a position that carries ministerial-level status.

Liu was the first ministerial-level official to face an investigation after Xi Jinping became Communist Party head in late 2012 and launched the most aggressive anti-graft campaign China has seen in decades.

via Former top planning official jailed for life in China over graft | Reuters.

03/12/2014

China’s Left-Behind Children are Lonely, Underperforming, and Sad – Businessweek

China has an estimated 61 million “left-behind children”—youths in the countryside who grow up separated from migrant worker parents. A survey has just detailed the problems facing an alienated generation whose members are usually raised by relatives, educated in rural boarding schools, or even forced by circumstance to live alone.

China's Left-Behind Children Are Lonely, Underperforming, and Sad

Without proper attention, many regularly suffer injuries, says a report released on Nov. 30 by the China Youth & Children Research Center. Almost half of the group’s members (known in Chinese as liushou ertong) has been injured in accidents involving cuts, burns, animal bites, traffic accidents, and electric shocks. That was 5.3 percent higher than the rate of injury experienced by other children, the study said.

With most attending underfunded, overcrowded rural schools—or even dropping out—the academic problems facing left-behind children are particularly severe. More than four-fifths reported problems with declining scholastic performance, and 43.8 percent were not interested in studying.

Just under 70 percent of left-behind children reported being unable to understand their class lessons. About one-half had problems finishing homework, 40 percent were late for classes, and 5.5 percent were often absent—all higher rates than those experienced by children raised by their parents.

Without access to adequate social support, many reported experiencing negative feelings. Almost one-half were irritable, while around 40 percent said they were unhappy. One-fifth said they had problems losing their temper without good reason.

Left-behind girls were even more vulnerable than boys, repording higher rates of problems in each of these areas, as well as a lower sense of self-worth than their male counterparts. As for loneliness—a problem experienced by all the left-behind children— girls again suffered more: Some 42.9 percent of left-behind girls said they often feel lonely. That’s 6.2 percent higher than their male counterparts reported, and it’s 6.7 percent higher than girls who live with their parents.

via China’s Left-Behind Children are Lonely, Underperforming, and Sad – Businessweek.

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