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Mint Explainer: Key takeaways from China’s Party Congress

by Index Investing News
October 25, 2022
in Opinion
Reading Time: 5 mins read
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The 20th National Congress of the Chinese Communist Party closed on Sunday. In its wake, China’s internal as well as external politics will witness a sea change. President Xi Jingping has sidelined rivals and is set to control the reins of power in the foreseeable future. Mint analyses the consequences of the CCP Congress.

What are the key takeaways from the conference?

As expected, Xi secured an unprecedented third term at the helm of the Chinese Communist Party. The concentration of power in his hands was clearly visible in the composition of the Politburo Standing Committee, a grouping of seven men who rule China. Unlike previous leaders, who constructed a delicate factional balance in this top political body, Xi has swept aside party elders and rival factions to place his own associates in top positions. Not only this, he has neglected numerous informal norms on age restrictions: older leaders were typically retired while younger ones were allowed to continue. These norms, which injected some stability into Chinese politics, were done away with. Proximity and loyalty to Xi is the only yardstick by which leaders were promoted.

Who were the winners and losers?

While Xi’s faction, which coalesced around him during his youth and time in China’s Fujian and Zhejiang provinces, was the clear winner, former presidents Jiang Zemin and Hu Jintao were the obvious losers. The world was gripped by images of China’s former leader Hu Jintao being led out of the Congress. While the official explanation was that the former leader was facing health problems, many have speculated that he was removed in a show of strength. Party elders, who play an important role in politics despite having moved on from key positions, typically continue to have a say in governing China. Xi has put a stop to this and has presided over the diminution of their authority.

What are the consequences for the world?

Judging by Xi’s speech at the Party Congress, China’s aggressive foreign policy is likely to continue. Xi doubled down on his heavy crackdown on pro-democracy protests in Hong Kong. Similarly, his aggressive stance on Taiwan was justified as a move against those in Taiwan who sought independence. Xi’s concentration of power means that numerous members of the CCP who wish to see a less confrontational diplomatic approach to the West have been sidelined. Foreign Minister Wang Yi, who has been a key member of Xi’s foreign policy team, has been placed on the Politburo and will likely become Xi’s top adviser on foreign affairs. China’s ‘Zero COVID’ strategy will continue and will hamper economic growth by repeatedly forcing closures of key sectors in the Chinese economy.

What are the consequences for India?

India-China relations are unlikely to improve under Xi. Numerous border crises, which took place during Xi’s time in office, have poisoned the relationship. New Delhi has made clear that normalcy will not be restored without a restoration of the status quo prior to the Galwan clashes. Given that the deadlock has continued for close to two-and-a-half years, a resolution seems unlikely. As stated before, Xi’s aggressive foreign policy is likely to continue and now cannot be checked by more moderate leaders who have been sidelined.

 

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