Ending Congress, China Presents New Leadership Headed by Xi Jinping

by Team FNVA
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Edward Wong
The New York Times
November 14, 2012

Completing only its second orderly hand-over of power in more than six decades of rule, the Chinese Communist Party on Thursday unveiled a new leadership slate headed by Xi Jinping, the son of a revered revolutionary leader and economic reformer, who will face the task of guiding China to a more sustainable model of growth and managing the country’s rise as a global power.

For this nation of 1.3 billion, the transition culminates a tumultuous period plagued by scandals and intense political rivalry that presented the party with some of its greatest challenges since the student uprising of 1989. Minutes before noon on Thursday, after a confirmation vote by the party’s new Central Committee, Mr. Xi, 59, strode onto a red-carpeted stage at the Great Hall of the People accompanied by six other party officials who will form the new Politburo Standing Committee, the elite group that makes crucial decisions on the economy, foreign policy and other major issues. Before their appearance, the new lineup was announced by Xinhua, the state news agency.

“We have every reason to be proud — proud, but not complacent,” said Mr. Xi, looking relaxed in a dark suit and a wine-red tie. “Inside the party, there are many problems that need be addressed, especially the problems among party members and officials of corruption and taking bribes, being out of touch with the people, undue emphasis on formalities and bureaucracy, and other issues.” He added, “To forge iron, one must be strong.”

The ascension of Mr. Xi and other members of the “red nobility” to the top posts means that the so-called princelings have come into their own as a prominent political force. Because of their parentage, they believe themselves to be the heirs of the revolution that succeeded in 1949, endowed with the mandate of authority that that status confers.

“I think the emphasis is on continuity over change this time around,” said Bo Zhiyue, a scholar of Chinese politics at the National University of Singapore.

Mr. Xi is facing a growing chorus of calls from Chinese elites to support greater openness in China’s economic and political systems, which critics say have stagnated in the last decade under the departing party chief, Hu Jintao, despite the country’s emergence as the world’s second-largest economy and a growing regional power.

Mr. Hu, 69, also turned over the post of civilian chairman of the military on Thursday to Mr. Xi, which made this transition the first time since the promotion of the ill-fated Hua Guofeng in 1976 that a Chinese leader had taken office as head of the party and the military at the same time. That gives Mr. Xi a stronger base from which to consolidate his power, even as he grapples with the continuing influence of party elders.

The unveiling came the day after the week long 18th Party Congress ended as Mr. Hu made his final appearance as party chief at a closing ceremony and seven standing committee members stepped down.

Mr. Xi is known for shunning the spotlight and being a skilled consensus builder. He spent his childhood in the leadership compounds of Beijing, but was forced to toil in a village of cave homes in Shaanxi Province for seven years during the Cultural Revolution, when his father was purged.

His first job was as an aide to a top general in Beijing. He then rose through the party ranks in the provinces, including Fujian and Zhejiang, two coastal regions known for private entrepreneurship and exchanges with Taiwan. Mr. Xi’s jobs and family background have allowed him to build personal ties to some military leaders. He is married to a celebrity singer, Peng Liyuan, and they have a daughter attending Harvard under a pseudonym.

Mr. Hu’s abdication of the military chairmanship sets an important institutional precedent for future successions and may put his legacy in a more favorable light. In Chinese politics, retired leaders try to maximize their influence well into old age, either by clinging to titles or by making their opinions known on important decisions.

Jiang Zemin, Mr. Hu’s predecessor as party chief and president, did both: he held on to the military post for two years after giving up his party title in 2002, which led to heightened friction within the party. And in recent months, he has worked to get his protégés installed on the standing committee, which is usually assembled through horse trading by party elders and leaders.

The committee was trimmed to seven members from nine. One reason for that change is that some party leaders, including Mr. Xi, believe that an overrepresentation of interests on the committee has led to gridlock in decision making. The smaller committee has also resulted in a downgrading of the party post that controls the security apparatus, which some officials asserted had grown too powerful.

The new standing committee has allies of Mr. Jiang in five of seven seats, reflecting his considerable power despite being hit by serious illness. Li Keqiang, a protégé of Mr. Hu’s, is expected to get the state title of prime minister next spring, when Mr. Xi becomes president. Mr. Li and Mr. Xi were the only members on the departing standing committee who are remaining part of the group.

The other officials on the new committee in order of ranking and their expected portfolios are Zhang Dejiang, head of the National People’s Congress; Yu Zhengsheng, who will run a similar advisory body; Liu Yunshan, vice president and overseer of propaganda; Wang Qishan, the head of an anticorruption agency; and Zhang Gaoli, the executive vice premier, who helps manage the economy.

One princeling said earlier to be a contender for the committee, Bo Xilai, was felled last spring by a scandal after his wife was accused of killing a British businessman.

The lineup is stocked with conservatives and older officials. An unspoken age limit for party leaders means that several of them will retire at the next party congress, in 2017, at which point Mr. Xi might have an opening to get other allies appointed.

Xinhua announced that Mr. Wang is the new head of the party’s Central Commission for Discipline Inspection, a group charged with investigating corruption and other infractions.

For months, there was talk that Mr. Wang would get an economic portfolio, but he appears to have been pushed aside for that job, which some analysts have said bodes ill for further economic liberalization. But Mr. Wang’s network in the finance industry, where he has considerable experience, could be a powerful tool in corruption investigations.

Mr. Wang joins Mr. Xi as one of three or four princelings on the projected committee. The princelings are not a coherent political faction, and their ranks are rife with personal and ideological rivalries. Their family connections may mean a greater confidence with wielding power and pressing for bolder changes. At the same time, that class has grown wealthy off China’s political economy, in which officials and state-owned enterprises work together to reap benefits, often at the expense of private entrepreneurship. Even those princelings who support liberalizing the economy or the political system still believe in the primacy of the party, and their push for various reforms is seen as an effort to ensure the party’s survival.

“These people around Xi Jinping who advise him and with whom he’s close, they do want reform, but on the condition that they maintain the rule of the Communist Party,” said Zhang Lifan, a historian and son of a former minister. “They consider the Communist Party and its rule a heritage from their fathers. So they’re not willing to risk losing it. They have limitations on how far they want reform to go.”

Mr. Xi will have to spend his first years building a power base, limiting the opportunity to make major policy moves. He might, however, support a further opening of the economy in his first five-year term, some political insiders said. If he or other leaders want to experiment with the political system, they would do that in his second term, even though true economic changes need political transformations as well.

Mr. Xi and the incoming leaders will also have to contend with the continuing influence of party elders, including Mr. Hu and Mr. Jiang. With the end of the 18th Party Congress on Wednesday, there are now about 20 retired standing committee members, and many of them want a say in major decisions.

But Robert Lawrence Kuhn, an American businessman who wrote an authorized biography of Jiang Zemin and remains close to senior officials, predicted Mr. Xi would surprise those expecting him to adhere to the status quo. The pressures on China to create a more sustainable economic system — one that relies less on investment in large projects and exports and more on domestic consumption and private business — will compel him to act soon. “The risks of not reforming are now higher than the risks of reforming,” Mr. Kuhn said.

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