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China

Fifth Generation: Who is Li Keqiang?

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This is the sixth in a series of posts examining the Chinese leaders named to the Politburo Standing Committee during the 18th National Congress of the Chinese Communist Party (中国共产党) that concluded November 14.  Prior installments on Zhang Gaoli here, Zhang Dejiang here, Liu Yunshan here, Yu Zhengsheng here and Wang Qishan here.

Unless something incredibly drastic happens in the coming months, Li Keqiang (李克强) seems likely to succeed Wen Jiabao (温家宝) as the premier of the government of the People’s Republic of China at the opening of the 12th People’s National Congress in March 2013. 

Along with China’s presumptive new ‘paramount leader,’ Xi Jinping (习近平), Li is one of just two of the previous nine members of the Politburo Standing Committee who remain on the committee after this week’s Congress, which concluded Wednesday.  In addition to Xi and Li, five new members joined the committee (although all are over age 64, hardly making them ‘new’).

After today, however, Li is essentially the second-most important government official in all of China, and he is expected to be a cautious reformer who’s keen on narrowing economic inequality in China and widening the social safety net.

Li, as noted, has been a member of the Politburo Standing Committee since 2007 and he’s been the PRC’s executive vice premier since 2007 as well.  He is also the youngest member, at age 57, on the committee.

He was a Party secretary in Liaoning, a province of 43 million people, that borders North Korea, from 2004 to 2007, spearheading a campaign to revitalize China’s northeast.

Previously, he served as the governor and the Party’s vice secretary of Henan province, China’s third most-populous province in the east-central heartland of the country with 94 million people, and one of the largest provincial economies in the country.  Although Henan province’s economy grew during Li’s tenure (indeed, with an emphasis on agricultural modernization that saw rural growth exceed already-high levels of province-wide growth), he also presided over a mini-scandal involving the contamination of blood that may have infected up to one million people with HIV.

A BBC profile notes that Li has attacked corruption that has plagued the Chinese government:

A US diplomatic cable released by whistle-blowing website Wikileaks described Mr Li as “engaging and well-informed”.

In a private conversation with the US ambassador in 2007, he called China’s economic figures “unreliable” and warned that official corruption was the biggest cause of public resentment, according to the leaked cables.

That puts him at odds with Wen, whose family allegedly holds over $2.7 million assets, as reported in the past weeks by The New York Times.  Hu’s speech kicking off the congress, too, emphasized the need to stem corruption in China’s official ranks.

Unlike many of the newly appointed members of the Politburo Standing Committee who are protégés of former president Jiang Zemin (江泽民), however, Li is more a protégé of outgoing current president Hu Jintao (胡锦涛), whom he encountered in the leadership of the Party’s youth league in the 1980s.  With Hu stepping back from active government, however, Li may have few natural allies with a relatively older and conservative group now comprising the Politburo Standing Committee.

Cheng Li, director of research and a senior fellow at the John L. Thornton China Center, surmises that although Li lacks Wen’s political charisma, he may well be central to many key policy issues over the next decade:

Based on his previous work and the populist policy agenda he shares with his mentor Hu Jintao, Li’s hot-button policy issues will include increasing employment, offering more affordable housing, providing basic health care, balancing regional development, and promoting innovation in clean energy technology.

Interestingly, Li’s wife, Cheng Hong, is a professor of English language and literature in Beijing, and Li himself is fluent in English, just as fellow Politburo Standing Committee member Wang Qishan.

Like Xi, he spent time during the Cultural Revolution working in rural China, on a farm, and like Xi, Li also has a doctorate — in Li’s case, in economics.

China

It’s official: China’s new Politburo Standing Committee

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As predicted last week: the new Politburo Standing Committee of the Chinese Communist Party is as follows: 

  • Xi Jinping (习近平), who is expected to become the president of the People’s Republic of China, the general secretary of the Party and ‘paramount leader’, and a ‘princeling’ whose father was a Party dignitary;
  • Li Keqiang (李克强), who is expected to become premier;
  • Zhang Dejiang (张德江), a longtime hand who has served as Party secretary in Guangdong province and most recently, replaced disgraced Party figure Bo Xilai as Party secretary in Chongqing municipality — and also a ‘princeling’;
  • Yu Zhengsheng (俞正声), Party secretary in Shanghai municipality and a princeling as well;
  • Liu Yunshan (刘云山), director of the Party’s propaganda department (i.e., in charge of censorship and Internet restriction as well);
  • Wang Qishan (王岐山), a vice premier for economic, energy and financial affairs, and expected to play a major, reformist role in economic policy in Xi’s government; and
  • Zhang Gaoli (张高丽), currently the Party secretary of Tianjin municipality, and a former official in Shenzhen’s special economic zone.
 Suffragio‘s profiles of Xi and Li will come shortly, but in the meanwhile, you can read all about the five new members by clicking the links above.

The Politburo Standing Committee has been reduced from nine members to just seven.  Interestingly, the five new members (Xi and Li were already members) are relatively old — and so old that they will not be eligible for re-appointment in 2017 at the next National Congress because each will be older than the 67-year age limit for members of the committee.

Both Zhang Gaoli and Zhang Dejiang, as well as Yu Zhengsheng are firmly protégés of former president Jiang Zemin (江泽民), who preceded current president Hu Jintao (胡锦涛), who is stepping down to make way for Xi.

Left out are two key Hu allies: Li Yuanchao, currently director of the Party’s organization department, and Wang Yang, Party secretary in Guangdong province and perhaps the most notable advocate for political reform.

Liu Yandong, the only woman serving on the Politburo, also failed to make the cut.

As has been predicted in recent days, Xi will become the general secretary of the Party and will also immediately assume the chairmanship of the CPC Central Military Commission.

Xi is currently speaking to the press now, and his speaking style surely seems much more relaxed and expressive than Hu’s.

Japan

Japan heads to snap elections on December 16

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Sooner than expected, Japan is headed to the polls: prime minister Yoshihiko Noda (pictured above) announced today that he will dissolve Japan’s lower house of parliament, the Diet, on Friday, clearing the way for snap elections on December 16.

It seems very likely that the Liberal Democratic Party of Japan (LDP, or 自由民主党, Jiyū-Minshutō), which controlled the Diet from 1955 to 2009, will return to power, and former Japanese prime minister Shinzō Abe (安倍 晋三), who served exactly one year as prime minister from 2006 to 2007, seems likely to return for a rare second stint leading Japan’s government following his selection as the LDP’s leader in late September.

Noda said the dissolution will be contingent on the LDP’s support for a package of measures to issue deficit-covering bonds this week, but the LDP seemed likely to support that package in any event.

The election will affect at least a half-dozen key policy issues, including relations with China, Japan’s pacifist constitution, a controversial sales tax increase set to go into effect in 2014, the Trans-Pacific Partnership agreement with other Asian countries and the United States, the future role of nuclear energy and fiscal policy in a country that’s seen low GDP growth since the 1980s.

Noda’s announcement was so striking because he needed to call an election only before August 2013, but currently, a record-high 64% of Japanese voters disapprove of his government, with just 18% approving.

Since the Democratic Party of Japan (DPJ, or 民主党, Minshutō) took control of Japan’s parliament after the 2009 elections, things haven’t gone so well for them — the party has gone through three different prime ministers in three years. Continue reading Japan heads to snap elections on December 16 →

Basque Country, China

The role of women in the CCP: just so much ‘beautiful scenery’?

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The 18th National Congress of the Chinese Communist Party (中国共产党) concluded today, but the photo above comes from a plucky photo essay at China People’s Daily, entitled ‘Beautiful Scenery,’ and depicts 14 photos of women delighting at various moments during the Congress.

As stated in the slideshow: ‘beautiful ritual girls, female reporters and delegates to the Party congress become beautiful scenery during the 18th National Congress of the Communist Party of China.’

Hat tip goes to Kathleen McLaughin, who’s been keeping a daily diary of the Congress for Foreign Policy, and who argues that gender disparity in China is perhaps getting worse, not better:

While 521 women serve as delegates in this party congress — 23 percent of the total, up from 18 percent a decade ago and higher than the 20 percent that women make up in the U.S. Senate — the members of China’s ceremonial electorate have far less influence over the process than their U.S. counterparts.

Gender discrimination often seems to be getting worse in China: Although a large percentage of Chinese women are employed (70 percent, compared with 25 percent in India), urban Chinese women earn about 67 percent of what men make, according to a 2010 survey from the All-China Women’s Federation. This summer, women in Guangzhou shaved their heads in protest of growing discriminatory policies around the country that require girls to score higher than boys on college entrance exams.

The Party hasn’t historically been incredibly welcoming to women, and in its history, it has yet to elevate a single woman to the Politburo Standing Committee, the chief governing body of the Party (and, accordingly, the Chinese government).  The members of the Politburo Standing Committee are likely to be announced by the end of this week.

One woman with an outside chance of being named to the Politburo Standing Committee is Liu Yandong (刘延东), who’s been a member of the Politburo (the only woman currently serving on the Politburo) since 2007 and who has served as a state councilor since 2008.  Liu (pictured immediately above) is a ‘princeling,’ as her father is Liu Ruilong, a former vice minister of agriculture, and she’s been close to outgoing Chinese leader Hu Jintao (胡锦涛) for three decades — notably, they worked together with the Party’s youth league in the 1980s.     Continue reading The role of women in the CCP: just so much ‘beautiful scenery’? →

China

Fifth Generation: Who is Wang Qishan?

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This is the fifth in a series of posts examining the Chinese leaders expected to be named to the Politburo Standing Committee during the 18th National Congress of the Chinese Communist Party (中国共产党) that kicked off November 8.  Prior installments on Zhang Gaoli here, Zhang Dejiang here, Liu Yunshan here and Yu Zhengsheng here.

Of all the potential new members of the Politburo Standing Committee, no one has a more assured spot than Wang Qishan (王岐山), who is expected to be the economic policy supremo of the next generation of leadership of the People’s Republic of China.

The only question is whether he’ll be elevated to executive vice premier under the likely new PRC premier, Li Keqiang (李克强), which had seemed likelier earlier in the summer and autumn, but now seems more uncertain, according to party sources.

The Congress concluded on Wednesday, with the Politburo Standing Committee members to be named today or tomorrow.

Wang, age 64, has served as the vice premier for economic, energy and financial affairs since 2007, when he became a Politburo member as well.

Previously, from 1989 to 1997, he was vice governor, then governor of the China Construction Bank, one of the world’s largest banks and indeed one of the world’s largest corporations.  As vice governor of Guangdong province in 2007, he was instrumental in the liquidation of the Guangdong International Trust and Investment Company, which, according to Robert Lawrence Kuhn in How China’s Leaders Think, signaled to the world that China was serious about developing market mechanisms that could bring discipline to the financial sector.

As such, he developed keen ties with former leader Jiang Zemin (江泽民), but his real patron among the older leadership is Jiang’s former premier, Zhu Ronghi (朱镕基), who, before his elevation to the premiership in 1998, served as vice premier and as the governor of China’s central bank (Wang served a brief stint as vice governor there as well).

Wang served as the Party chairman of Hainan province — the tropical island at the south of the Chinese mainland that stylizes itself as China’s Hawaii — from 2002 to 2003.  Hainan is, itself, an interesting story of Chinese internal growth — formerly part of Guangdong province until 1988, China’s leaders separated Hainan as its own province and designated it a ‘special economic area.’  Despite being seen as something of an economic backwater for centuries, its economy has grown in leaps and bounds, even by Chinese standards, in the past decade, and China hopes to transform it into an international tourism destination within the next decade.

He thereupon served as the mayor of Beijing from 2003 to 2007 and handled much of the preparation for the city’s hosting of the 2008 Summer Olympics.

Kuhn reports that Wang is a humorous and sophisticated rising star:

When the Olympics was approaching, a distinguished American financier asked for [Wang’s] business card.  “You won’t need my card,” Wang, then Beijing mayor, said with a smile. “If the Olympics is successful,” he joked, “I’ll be too high to help you — and if it’s not successful, I won’t have a phone!”

Wang, perhaps more than Li, China’s current ‘paramount leader,’ president and Party general secretary Hu Jintao (胡锦涛) or the expected new Chinese leader, Xi Jinping (习近平), is at ease with the international media — check out his interview with U.S. secretary of state Tim Geithner and Charlie Rose.  So Wang will likely have a major role to play in U.S. foreign relations as well, especially given the key economic issues involved in the U.S.-China relationship.

Named to the Time 100 in 2009, Wang was greeted with glowing praise from former U.S. treasury secretary Henry Paulson: Continue reading Fifth Generation: Who is Wang Qishan? →

China, Tibet

Amid the CCP handover of power to Xi Jinping, ethnic Tibetan issue remains a thorny problem

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The first thing you notice about Qinghai province is that it’s rather desolate — more Utah than Alaska, and the first thing you notice about Rebkong is that it’s a dusty town far away from even the provincial capital.  A world away from the center of Qinghai, itself a world away from Beijing.

I visited Rebkong in April earlier this year with an American friend based at the time in Shanghai, along with Xining (Qinghai’s capital) and other spots in Qinghai province, which lies in the northwest of the People’s Republic of China.  Just a couple of hours away from Beijing by air, Qinghai is indeed a world away, lying as it does on the far east of the Tibetan plateau.  With just 5.6 million people, the province contains just a handful of China’s trillion-plus population — the only province with fewer people is Tibet proper, with around 3 million.

We went to Qinghai, frankly, because getting PRC approval for the permits and guides to visit Tibet province has become such an incredible hassle since the 2008 Tibetan protests.  A kind of ‘Tibet without Tibet.’ But that was probably too twee a slogan, because Qinghai — known historically to Tibetans as Amdo — is as much Tibetan as what lies within the PRC boundaries of the Tibetan ‘autonomous region.’

The region (Amdo or Qinghai, as you like) has been under Chinese control since it was secured by the Qing dynasty in 1724.  It’s home to several important Tibetan Buddhist monasteries, including Kumbum monastery (སྐུ་འབུམ་བྱམས་པ་གླིང།, or ‘Ta’er si’ in Mandarin Chinese, 塔尔寺), founded in 1577 on the site of the birthplace of Tsongkhapa, an important figure in the development of Buddhism and the founder of the Gelug (‘yellow-hat’) school of Buddhism — its importance to Tibetan buddhism is second only to Lhasa, Tibet’s capital.  Indeed, what we know as ‘Tibet’ today is really just the western part of the historic Tibetan empire, which included not just Amdo, but Kham, which is now the western part of Sichuan province in the PRC. So we were delighted to see a corner of greater Tibet not already fawned over by Richard Gere and so many others.

Xining itself is a mix of Muslims (Hui Chinese), Tibetans and Han Chinese, but outside the capital, Qinghai is indisputably Tibetan, and it’s the birthplace of Tenzin Gyatso, the 14th Dalai Lama.

After a night in Xining quaffing barley wine at the local Tibetan bar, we found a local guide who agreed to show us around for the next couple of days, beyond just a quick trip to Kumbum, but a true journey into the Tibetan hinterland.  We started our days with tsampa, a high-power concoction of yak butter and barley flour (it reminded me of a buttery version of the energy gels you eat during marathons), gorged ourselves on momo (yak-meat dumplings) and snacked on fresh yak-milk yogurt in between visiting monasteries, such as Rgolung (Youning si’ in Chinese), which nestles upon a handful of ledges in the cliffs of eastern Qinghai province.

As it so happens, our young, kind guide was from Rebkong, so we spent a night there, and we saw the monastery, Rongwo (pictured above, center and bottom), where he studied as a child and young adult, and we saw the square just outside, Dolma Square (pictured above, top).

That square has become a center of the latest Tibetan protest against the governing Chinese regime when 18-year-old Kalsang Jinpa lit himself on fire [graphic photos] there, one of six Tibetans in the past week to die in a wave of self-immolations in protest of Chinese rule.  The situation in Rebkong is becoming tense, according to reports [graphic photos], with 20-year old Nyingchag Bum self-immolating Monday:  Continue reading Amid the CCP handover of power to Xi Jinping, ethnic Tibetan issue remains a thorny problem →

China

Fifth Generation: Who is Yu Zhengsheng?

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This is the fourth in a series of posts examining the Chinese leaders expected to be named to the Politburo Standing Committee during the 18th National Congress of the Chinese Communist Party (中国共产党) that kicked off November 8.  Prior installments on Zhang Gaoli here, Zhang Dejiang here and Liu Yunshan here.

Today, we continue our look at the expected members of the Party’s new Politburo Standing Committee with Yu Zhengsheng (俞正声), currently the Party secretary of Shanghai municipality — where he presided over the citywide expo in 2010 — and a Politburo member since 2002.

Yu’s elevation — if true — to the Standing Committee would seem to be a victory for the conservative elite — he’s a ‘princeling,’ a cautious economic reformer  at best, and close to former leader Deng Xiaoping and former leader Jiang Zemin (江泽民).  With the Congress likely to reduce the number of Standing Committee members from nine to seven, his inclusion would mean the exclusion of the relatively more reformist Party secretary of Guangdong province, Wang Yang (汪洋) and the leader of the Party’s organization department, Li Yuanchao (李源潮) — Wang, and especially Li, are considered protégés of the outgoing general secretary, president and ‘paramount leader,’ Hu Jintao (胡锦涛).

He served as the Party’s minister of construction from 1998 to 2001.

From 2002 to 2007, he was the Party secretary in Hubei province, a province of over 57 million people in central China, home to the Three Gorges Dam.

Cheng Li, director of research and a senior fellow at the John L. Thornton China Center, notes in his profile of Yu his ‘extraordinary family background’: Continue reading Fifth Generation: Who is Yu Zhengsheng? →

China

Fifth Generation: Who is Liu Yunshan?

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This is the third in a series of posts examining the Chinese leaders expected to be named to the Politburo Standing Committee during the 18th National Congress of the Chinese Communist Party (中国共产党) that kicked off November 8.  Prior installments on Zhang Gaoli here and Zhang Dejiang here.

Liu Yunshun  (刘云山), more than almost any other person in the People’s Republic of China, is responsible for the execution of the so-called ‘Great Firewall’ — that mix of controls that censors access to the Internet within China.

This isn’t a history of the ‘Great Firewall,’ but if you haven’t, go read James Fallows’s essential piece on Internet censorship in China in The Atlantic, and you’ll start to understand why Liu is a natural choice for elevation to the Politburo Standing Committee.  As Fallows writes, there’s really not one ‘Great Firewall,’ but a sophisticated systems of controls.  Internet-based data comes to China via three major choke points: from Japan to Beijing/Tianjin, from Japan to Shanghai, and from Hong Kong to Guangzhou, making it easier for China to censor information coming into the country with a number of technologically-enabled strategies.  Furthermore, although the system is relatively easily circumvented by a proxy server or, to better effect, with a virtual private network (VPN), few Chinese citizens can afford or seem willing to go through the hassle of circumventing the ‘Great Firewall.’

Liu (pictured above), aged 65, has been a Politburo member since 2002, and since 2007, he been the director of the Party’s propaganda department, and so the PRC’s chief official responsible for propaganda and censorship.

He’s vice chair of the Party’s splendidly euphemistic Central Guidance Commission for Building Spiritual Civilization, which essentially controls the Party’s propaganda department, currently chaired by outgoing Politburo Standing Committee member Li Changchun — Liu is expected to succeed Li upon his ascension to the Politburo Standing Committee as the PRC’s top ‘propaganda czar,’ where he is expected to continue the Party’s strict controls over media and Internet censorship.

Liu’s background is unique in three ways. Continue reading Fifth Generation: Who is Liu Yunshan? →

China

Fifth Generation: Who is Zhang Dejiang?

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This is the second in a series of posts examining the Chinese leaders expected to be named to the Politburo Standing Committee during the 18th National Congress of the Chinese Communist Party (中国共产党) that kicked off November 8.

Yesterday, I examined the background and career of Zhang Gaoli (张高丽), the Party secretary in the municipality of Tianjin.

But another Zhang is expected to be appointed to the Politburo Standing Committee — Zhang Dejiang (张德江), a North Korean expert who’s been part of the wider 25-member Politburo since 2002 and who has served as a vice premier for energy, telecommunications and transportation.

Like the other Zhang, this Zhang is also 66, and he’s also a protégé of former president and ‘paramount leader’ Jiang Zemin (江泽民).

Earlier this year, Zhang stepped into the spotlight to take over from the disgraced Bo Xilai, who was forced to step down as the Party secretary of Chongqing municipality in March 2012 amid various scandals about corruption and a high-profile trial of his wife, Gu Kailai, who was convicted in August for murdering a British expat in August.  Late last month, Bo was expelled from the National People’s Congress, and he’s expected to be tried for charges soon as well.  It marked a remarkable downfall for Bo and the most sensational Chinese political scandal in recent memory.

Bo had attained near rock-star status as Chongqing’s leader, and his leftist ‘Chongqing model’ that featured double-digit growth along with attention to social welfare programs in the face of China’s rising inequality, as well as populist attacks on organized crime and a retro embrace of the ‘red’ culture of old-school Maoism and the songs and slogans of the Cultural Revolution, caused great discomfort among the highest echelons of the Chinese government, who determined that his anti-corruption programs were less than honest governance than the corrupt shakedowns of a leader on the verge of building his own personality cult.

Like Zhang and Xi Jinping (习近平), who is expected to become China’s new ‘paramount leader,’ Bo was a ‘princeling’ — the son of an earlier senior Party dignitary, Bo Yibo — one of China’s most powerful leaders in the 1980s and the 1990s — which makes the younger Bo’s downfall all the more remarkable.

With Zhang firmly reasserting more orthodox control over Chongqing — he denied earlier this week that a ‘Chongqing model’ even exists– he appears to have passed a key hurdle in a career that’s seen as many highlights as disappointments.

Now, it appears that Zhang will take the seat on the Politburo Standing Committee that seemed at one time virtually assured for Bo.

As noted above, Zhang’s father Zhang Zhiyi served as a major general in the People’s Liberation Army.

Zhang studied Korean in his youth and studied economics in Pyongyang in North Korea before returning to China, and his Korean expertise brought him initially to prominence when he arranged Jiang’s trip to North Korea in 1990 and, under Jiang’s patronage, rose through the ranks in Jilin province, which borders North Korea and Russia in the far northeast of China.  Zhang was appointed Party secretary of Jilin province in 1995 and served until 1998, and he was credited with successfully addressing the issue of Korean immigration — about 4.25% of Jilin’s population is ethnically Korean. Continue reading Fifth Generation: Who is Zhang Dejiang? →

China

Fifth Generation: Who is Zhang Gaoli?

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This is the first in a series of posts examining the Chinese leaders expected to be named to the Politburo Standing Committee during the 18th National Congress of the Chinese Communist Party (中国共产党) that kicked off November 8.

With the apparent finalization of the seven members (reduced from nine) of the new Politburo Standing Committee, it appears that Zhang Gaoli (张高丽) has made the cut, and indeed, Zhang typifies the ‘new’ faces of the so-called ‘fifth generation’ of China’s leadership — neither incredibly new nor incredibly liberal.

Zhang, age 66, would be among the oldest of the Standing Committee’s new members and is a protégé of former president Jiang Zemin (江泽民).  Although Zhang is expected to be a strong voice for continued economic reform, he’s not exactly a liberal reformer in the style of Wang Yang, the Party secretary in Guangdong who has been relatively lax about censorship and restrictions on political speech.

What does stand out about Zhang’s record, though, is that he’s been at the forefront of China’s economic wave in three different positions in three urban hot spots on China’s eastern coast over the past 15 years — so much so that Zhang could emerge as the new executive vice premier, essentially the lead economics policymaker in China — it’s thought that he and Wang Qishan (王岐山) are in competition for the role.

Currently, Zhang currently serves as the Party secretary in Tianjin municipality — along with Beijing, Shanghai and Chongqing, Tianjin is one of four municipalities that is essentially governed like China’s other provinces.  Tianjin, just north of Beijing, has long been a key transportation hub on eastern China’s coast and, with 11.1 million people, China’s fourth largest city — to put it in perspective, Tianjin has just a handful more people than Chicago and New York combined.  As Party secretary, Zhang has been instrumental in developing Tianjin’s Binhai New Area — a new economic zone along the coast that aims to replicate the Pudong New Area in Shanghai, and by all accounts, is succeeding at breakneck speed, and has already surpassed Pudong in terms of GDP.

In many ways, his ascent parallels the ascent of China’s emergence as a global economic power, with all the positive and negative attributes that brings — admirers point to his fervor for liberalizing China’s economy, but critics decry debt-financed public-sector spending on misguided infrastructure:

All this debt-fuelled investment in trophy projects has certainly resulted in rapid headline growth rates, and clearly it has boosted Zhang’s career. But how much of it will ever generate an economic return is doubtful. The handful of analysts who have examined Tianjin’s finances in detail warn of a massive bad debt explosion in the making….  As party boss in Tianjin, Zhang has proved himself an ardent proponent of China’s investment-at-all-costs growth trajectory.

That is exactly the model economists say Beijing must now reject if it is to avoid the dreaded middle-income trap and sustain its development over the next 10 years.

Unfortunately, if Zhang does indeed succeed to the economic policy hot-seat next week, it looks as if China’s chances of a successful rebalancing away from debt-funded investment and towards growth powered by private consumption will be severely diminished.

Perhaps more fundamentally, however, Zhang made his mark as the Party secretary of Shenzhen from 1997 to 2002.  Shenzhen is a special economic zone adjacent to Hong Kong — it was essentially opened up to free-market policies by Deng Xiaoping in the 1980s and it was one of the first experiments in the great transformation of China from a Maoist communist economy one into a ‘market socialist’ economy.  Continue reading Fifth Generation: Who is Zhang Gaoli? →

China

It’s still all about Jiang

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A humorous post on Weibo, China’s variant of Twitter, of various shots of former Chinese president Jiang Zemin nodding off — or otherwise looking quite somnolent at the 18th National People’s Congress of the Chinese Communist Party.

The Congress kicked off earlier today in Beijing, and is expected to produce the elevation of Xi Jinping (习近平) to the position of general secretary of the Party as China’s current president and ‘paramount leader’ Hu Jintao (胡锦涛) transfers power to a new generation of leaders.

Notably, Hu’s predecessor, former president Jiang Zemin (江泽民) has emerged as a key political player, and he has influenced many of the expected new members of the Politburo Standing Committee that will essentially govern China for the next five years under Xi’s leadership.

The post was removed from Weibo, of course.  Despite a remarkably more open transfer of power, there are still limits on political expression in the People’s Republic.

China

Unveiling the PRC’s new Politburo Standing Committee members

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In advance of the 18th National Congress of the Chinese Communist Party (中国共产党), set to begin November 8, the South China Morning Post printed Friday what it believes will be the list of the seven members of the most elite body in Chinese policymaking: the Party’s Politburo Standing Committee. The list has been corroborated by other news sources, and while not final, seems very likely to be the seven set to be appointed at the Congress.

The Standing Committee, expected to be reduced from nine to just seven members, is drawn from the larger (~25 members) Politburo, which itself is drawn from the ~300-member Central Committee of the Party.

If the reports are accurate, the Standing Committee will include the following members:

  • Xi Jinping (习近平), a member of the Standing Committee since 2007 and the current vice president of the People’s Republic of China, is widely expected to replace Hu Jintao as China’s ‘paramount leader,’ general secretary of the Party and, later in March 2013, as PRC president.  Xi is a ‘princeling,’ one of a group of current Chinese political leaders whose fathers were also senior Party leader during the first decades of Communist rule in China.  His father, Xi Zhongxun, was purged during the Cultural Revolution of the 1960s.  Xi previously served as the Party secretary of Zhejiang province (essentially, Shanghai’s hinterland on the south-central coast of eastern China) and then of Shanghai municipality in 2007 until becoming vice president.
  • Li Keqiang (李克强), also a Standing Committee member since 2007 and the PRC’s executive vice premier, is widely expected to replace Wen Jiabao as China’s premier in March 2013.  He served as Party secretary in Liaoning  province from 2004 to 2007.  He’s seen as a Hu protege, but will have a hard time following Wen, who remains perhaps the most charismatic and genuinely popular Party leader within the PRC today.
  • Wang Qishan (王岐山), a vice premier for economic, energy and financial affairs and a Politburo member since 2007, is seen as one of the most capable up-and-coming Chinese leaders.  Notably, he’s also seen as a proponent of further liberalization of China’s economy, additional fiscal reforms, and further foreign development and investment.  He headed the China Construction Bank in the 1990s, took over as the Party chairman of Hainan province (the tropical island at the south of the Chinese mainland) from 2002 to 2003 and served as mayor of Beijing from 2003 to 2007 before his appointment as vice premier.
  • Zhang Dejiang (张德江), a vice premier for energy, telecommunications, and transportation and a Politburo member since 2002, like Wang, is a protege of former PRC president Jiang Zemin, Hu’s predecessor, and like Xi, is also a ‘princeling.’ Zhang has a long career in Chinese politics — he was Party secretary of Jilin province (in China’s northeast, bordering North Korea and Russia) from 1995 to 1998 under Jiang, Party secretary of Zhejiang province from 1998 to 2002, Party secretary of Guangdong province (the largest province in China, and the home of Guangzhou and the Pearl River valley, where much of China’s amazing export growth has taken place in the past two decades) from 2002 to 2007, during the worst of the SARS crisis, and most recently, since March 2012, the Party secretary of Chongqing municipality following the removal of disgraced Chinese leader Bo Xilai.
  • Yu Zhengsheng (俞正声), currently the Party secretary of Shanghai municipality and a Politburo member since 2002, is also a princeling, and was very close to former leader Deng Xiaoping as well as to Jiang.  He was the PRC’s minister of construction from 1998 to 2001, Party chair of Hubei province in central China from 2002 to 2007, and thereupon became Party secretary of Shanghai.
  • Liu Yunshan (刘云山), director of the Party’s propaganda department and a Politburo member since 2002, who will likely remain in charge of propaganda and censorship.  Certainly no princeling, Liu rose up through the Party’s youth league.  His elevation to the Standing Committee marks a victory for the more conservative elements of the Party.
  • Zhang Gaoli (张高丽), currently the Party secretary of Tianjin municipality and a Politburo member since 2007, and yet another Jiang protege.  Zhang rose to prominence as the Party secretary in Shenzhen from 1997 to 2002 — Shenzhen is the special economic zone adjacent to Hong Kong that emerged as one of the PRC’s few early free-market zones, and Zhang’s experiences there make it likely that he’ll be among the Standing Committee members most likely to support further economic reform.  He thereupon became Party secretary of Shandong province, just south of Beijing on east-central coast of China, from 2002 to 2007, and was thereafter appointed to his current post in Tianjin.

If the line-up is confirmed later this month, it will mark a significantly conservative leadership with respect to most reforms, although potentially much more open to further economic reforms.  These seven Standing Committee members would be seen as much closer to Jiang than to the ‘fourth generation’ leaders, Hu and Wen. Continue reading Unveiling the PRC’s new Politburo Standing Committee members →

China, United States

Two systems, two transitions: China, U.S. face leadership crossroads simultaneously

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Next week, arguably the two most important countries in the world will kick off two very different leadership transitions.

On Tuesday, November 6, the United States of America will hold a general election.  For the 57th time since 1790, Americans will vote for U.S. president, at once the country’s head of state and head of government.  The winner will most certainly be one of two men: the Democratic Party incumbent, former Illinois senator Barack Obama (pictured above, right) or the Republican Party challenger, former Massachusetts governor Willard ‘Mitt’ Romney.  Americans will also determine who will control the both the lower and upper houses of the U.S. legislature.‡  The new Congress will be sworn in early in January 2013 and the president will be inaugurated (or reinaugurated) on January 20.

On Thursday, November 8, the People’s Republic of China will watch as the 18th Congress of the Chinese Communist Party (中国共产党) gets underway in Beijing, where all but two of the members of the Politburo Standing Committee, China’s foremost governing body, will step down and new members will be appointed in a once-a-decade leadership transition.  China’s ‘paramount leader’ Hu Jintao (pictured above, left), the general secretary of the Chinese Communist Party and PRC president since 2002, is expected to be replaced by Xi Jinping as general secretary, with the other state offices to follow through early 2013.  China’s premier, Wen Jiabao, is expected to be replaced by Li Keqiang.  Otherwise, the Politburo Standing Committee is expected to be reduced from nine to seven members and will include Xi, Li and five new faces — generally known as the ‘fifth generation’ of China’s leadership.

Despite their vastly different political systems, it’s fitting that the two transitions will coincide so neatly for the two most powerful countries in the world, both so alien culturally and interlinked economically — and there are parallels for both the superpower of the 20th century and a rising superpower of the 21st.  For every ‘5,000 years of history,’ there’s a corresponding ‘shining city on a hill.’  The United States has George Washington, Thomas Jefferson and 1776; China has Mao Zedong, Zhou Enlai and 1949.

The United States is the world’s third-most populous country with 315 million people, the third-largest country by land area, and the world’s largest economy with a GDP last year of over $15 trillion.  China, meanwhile, is the world’s most populous country with 1.347 billion people, the second-largest country by land area, and the world’s second-largest economy with a GDP last year of $11.3 trillion.

In 2012, if we don’t quite live in a bipolar world, we certainly live in a multipolar world where the United States and China are first among equals, and the U.S.-Chinese relationship will, of course, be a major focus of both governments over the next four years and beyond.

Indeed, Chinese relations have been an issue throughout the U.S. presidential election.

China emerged, if not unscathed, certainly more economically powerful than ever before following the 2008-09 global financial crisis, and China may well have the world’s largest economy within the next decade.  But the juggernaut of its double-digit economic growth, which has been fairly consistent throughout the past 20 years, is showing signs of sputtering, and a Chinese slowdown (or even a recession) would have a major impact upon the global economy.

Romney has vociferously attacked China for manipulating its currency, the renminbi, to keep the cost of its exports low, and Obama’s treasury secretary Timothy Geithner has made similar, if more gentle, criticisms.  Notably, however, the renminbi has appreciated about 8.5% since Obama took office in January 2009, chiefly because the Chinese government has hoped to cool inflationary pressure.

The level of U.S. debt held by the Chinese government has also become an important issue, especially with the U.S. budget deficit at its highest level (as a percentage of GDP) since World War II.  China, however, holds only about $1.132 trillion out of a total of around $15 trillion in U.S. debt, which is down from its high of around $1.17 trillion in 2011 — meanwhile, Japan has accelerated its acquisition of U.S. debt and may soon hold more than China.  The outsourcing of jobs previously filled in the United States has long been an issue across the ideological spectrum of U.S. domestic politics, with respect to China and other Asian countries.

In reality, however, other issues are just as likely to dominate the next generation of Chinese and American leadership.  With both militaries looking to dominate the Pacific (note the growing U.S. naval presence in the Philippines and throughout the Pacific), geopolitical stability throughout the region will be more important than ever — not just the perennial issue of Taiwan, but growing concerns about North Korea’s autarkic regime, tensions between China and Japan over territorial claims or other future hotspots could all spur wider crises.

As China’s middle class grows in size and purchasing power, and as the United States continues to boost its exports, China will become an increasingly important market for U.S. technology, entertainment and energy in the next two decades.  China’s accession to the World Trade Organization in 2001 and its increasing role as a trading partner with the United States mean that trade-related issues — such as the case that the United States brought against China in the WTO last month on cars and auto parts — will only become more important.

But while the U.S. federalist constitutional structure — with its tripartite separation of powers — has been set in place since the adoption of its Constitution in 1787, the Chinese structure is a more recent creation.  The Chinese Communist Party holds a National Congress every five years, with a handover of power every ten years, vesting power in a collaborative Politburo Standing Committee that makes all key policy-making decisions, a process that came into being only really with the passing of Deng Xiaoping in the 1990s.

After Deng, Jiang Zemin and the so-called ‘third generation’ of China’s political leadership essentially regularized the current process, and the ‘fourth generation’ led by Hu and Wen that assumed leadership in 2002 and 2003 is now set to pass leadership on to the ‘fifth generation’ under Xi and Li.

China’s party-state essentially has a dual structure: the state institutions of government (the National People’s Congress and the State Council) and the structure of the Chinese Communist Party are essentially parallel — the same people control both.  So from a wide base of over 2,000 delegates to the National Party Congress, around 200 will form the Party’s Central Committee, just 25 the more important Politburo and, after next week’s transition, merely seven will form the Politburo Standing Committee.  Those seven will also hold the key offices of state — as noted, Li is expected to become China’s premier, the head of the PRC government and Xi, as general secretary of the  Party, will serve as the president of the PRC and the chair of the Central Military Commission, the entity that directs the People’s Liberation Army, China’s main armed forces. Continue reading Two systems, two transitions: China, U.S. face leadership crossroads simultaneously →

China

Ai Weiwei does a ‘Gangnam Style’ parody

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Forget UN secretary-general Ban Ki-moon.  We’ve got the best parody yet of ‘Gangnam Style.’

As we look to China’s transition to the ‘Fifth Generation’ of leadership next month, which is expected to install Xi Jinping at the head of China’s government, Chinese dissident artist Ai Weiwei has filmed his own plucky parody of South Korean pop start Psy’s hit song ‘Gangnam Style.’

Not typically subtle, Ai appears with a pair of handcuffs, symbolizing his arrest in 2011, his house arrest in Beijing, which was lifted only in June of this year (he’s still forbidden to travel outside of China).

Ai’s become internationally famous — and he’s probably the most infamous opponent of the current Chinese Communist Party not currently in jail in the Middle Kingdom.

For background on ‘K-Pop,’ here’s The New Yorker opus on South Korea’s most successful export of the past decade.

Japan

Abe returns to lead Japan’s Liberal Democrats in advance of 2013 Diet elections

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Former Japanese prime minister Shinzō Abe has returned to the leadership of the once-dominant Liberal Democratic Party of Japan (LDP, or 自由民主党, Jiyū-Minshutō) after an internal party election Wednesday, paving the way for a rare second act in Japanese politics for the nationalist Abe. 

Abe will likely now lead the LDP into elections in 2013 against the ruling Democratic Party of Japan (DPJ, or 民主党, Minshutō).  Although the LDP remains unpopular, polls show that the LDP appear likely defeat the even more unpopular DPJ — that means Abe is now the hands-on favorite to become Japan’s next prime minister.

Abe, who succeeded the wildly popular reform-minded Junichiro Koizumi as prime minister in 2006, was the first of a string of six prime ministers from both the LDP and the DPJ who have followed in the ensuing six years.  He served exactly one year before resigning, ostensibly for poor health, but Abe had become increasingly unpopular throughout 2007 following LDP misappropriation scandals (which resulted in the suicide of his agriculture minister) and tumult over Japan’s role in the military action in Afghanistan.  Under Article 9 of Japan’s constitution, Japan is prohibited from any act of war, making even a supporting role in the Afghanistan action controversial.

As prime minister, Abe was known for his nationalist stance vis-a-vis China, North Korea and South Korea.  That posture has taken on greater significance, with China and Japan now facing off in an increasingly tense standoff over the status of the Senkaku islands (known as the Diaoyu islands in Chinese).  The showdown has already led to a massive anti-Japanese sentiment on the Chinese mainland and threatens to destabilize not only East Asian trade and commerce, but also peace throughout the region at a time when both countries are looking to leadership transitions.

Japan’s current DPJ prime minister Yoshihiko Noda is forecast to lose the next general election, which must be held before August 30, 2013.  Chinese leaders are likewise focused on a transfer of power within the Politburo Standing Committee of the Communist Party — outgoing general secretary Hu Jintao is set to be succeeded by Xi Jinping, but higher-than-normal turnover is also expected among the nine-member standing committee as well.

Abe is relatively pro-American — the DPJ came into office on a promise (unfulfilled) to close a U.S. military base in Okinawa, a promise (fulfilled) to end Japan’s refueling mission in Afghanistan, and to orient Japan’s foreign policy more toward Asia than to the United States.  In addition, Abe has expressed interest in revising Article 9 of Japan’s pacifist constitution in order to allow Japan to have some kind of military force in the future.

Continue reading Abe returns to lead Japan’s Liberal Democrats in advance of 2013 Diet elections →