Insight Perspectives China China’s new “core leader” – Xi Jinping By Invitation Insightperspectives regularly invites experts to write about “special” issues of importance to the financial market. In this context, Joergen Delman, professor, PhD, China Studies, Department of Cross-Cultural and Regional Studies, University of Copenhagen, has been invited to make his assessment of the just closed annual plenary session of the CPC Central Committee. Joergen Delman works on China’s political economy, politics, civil society, climate policies and environmental issues. He is a frequent public speaker and media commentator on these topics and has lived in China for ten years, working as a consultant for international development organisations, as well as Danish and international businesses. He has worked extensively with and within Chinese government organisations at central and local level. Joergen Delman is Co-coordinator of ThinkChina.dk. While Xi Jinping has been acting as the de facto “core leader” of the Chinese Communist Party’s (CPC) leadership for long, he has now become officially equipped with the title. This was the main news from the annual plenary session of the CPC Central Committee last week of October. The Plenary focused exclusively on the party’s own internal affairs and challenges under the heading of anti-corruption and party discipline. 6 Judging from the documents that came out of the Plenary and the highly controlled public debate ensuing it, the latter is the most likely explanation. The Party has deep internal rifts, it must bring its own house in order and reinvigorate itself. With his new title, Xi has staked his political destiny on bringing the party through this moral and political crisis. He demands absolute loyalty from all corners of the party; otherwise, it will be unable to renew its legitimacy vis-à-vis ordinary Chinese citizens. Shanghai, who was brought in by Deng to clean up the mess after the military crackdown on popular protests around China in 1989, a boost vis-á-vis, Zhao Ziyang, his dethroned liberalist predecessor who was quite popular. Jiang’s successor, Hu Jintao, was never conferred the title. Therefore, Xi now belongs to a very special group of four historically significant CPC leaders. Xi’s appointment should not be interpreted as symbolic politics only. He needed the title to force his peers to support his tough policies, or, at least, to recognize that Insight Perspectives It is noteworthy that the Party in charge of the world’s second largest economy, which is not performing as well as it should these years, have considered it necessary to spend a precious, once-in-a-year gathering of its 197 top leaders entirely on its own affairs. This could be interpreted as the luxury of an incredibly self-confident and successful party, or it could be seen as a symptom of a party in deep conflict with itself. Why a core leader? By becoming core leader, Xi is put on a par with the two most iconic leaders of modern China, Mao Zedong and Deng Xiaoping. Deng coined the term in 1989 to denote the special political and historical roles of Mao Zedong and himself, and to give Jiang Zemin, the leader of the risk of opposing him has been upped considerably. A recent run of strictly choreographed interviews on TV with a series of repentant top leaders and officials brought down during the anti-corruption campaign and now in jail has shown that the road from being a 7 Insight Perspectives “bigwig” to becoming a zombie prisoner without rights at all for the rest of one’s life is not that long these days. While focusing on anti-corruption and party discipline, the Plenary strongly emphasized that leaders at all levels, not least party leaders who are the “number one power holder” (第一把手) in any given organization, are personally responsible not only for their own misdemeanors, but also for those of their families or their organizations. It was strongly emphasized that in the future there will be no more free zones, no special privileges or exemptions from supervision for any leader, including absolute top leaders. It has been speculated that Xi has been carving out a position for himself as a new Mao Zedong, a new penultimate totalitarian “great leader”. Although the Chinese propaganda apparatus would happily support such an effort, this is not the most likely way forward for Xi. With the clout that the new position accords him, he is already at the apex of power. The new title was accorded formally, but it is not defined in official party statutes. Therefore, Xi can use it to exalt his already considerable power within the existing power arrangements. 8 Power struggle on the way? So why did Xi Jinping become core leader? Presumably, he needed the title to boost his position and to match Jiang Zemin whose network is still considered influential. More specifically, the Plenary decided on a time frame for conducting the 19th Party congress. The congress members will be appointed during the coming spring and the new congress will have its inaugural meeting during the second half of 2017. This will mark the beginning of Xi Jinping’s second 5-year term as party leader. While foreign observers have speculated that Xi will not respect the institutionalized rules for the elections that have been put in place since Deng Xiaoping initiated them, there is no foundation for such speculation. It is more likely that the process of organized elections cum appointments of candidates for the congress, its central committee and the politbureau will happen in reasonably orderly fashion during the course of the next 6-8 months. The Politbureau and its Standing Committee, China’s absolute top leadership, will be formally elected amongst the new members of the Central Committee. This process will be preceded by tough negotiations between influential elite actors and their alliances. As It has been speculated that Xi may break the 10 year term limit imposed on top leaders, but there are no indications to support this either. Even as a core leader, he would be taking a very big risk of being brought down by his peers, if he did so. It is however likely that Xi’s successor will be amongst the new members, although Xi may not wish to actually point to the candidate at the outset. Previous CPC core leaders have had serious difficulties with keeping their preferred successors in position if they appointed them prematurely. Xi Jinping’s three traps Xi’s handling of the Plenum shows that he wants to deal with the future leadership line-up, to swing support from all corners of the party for his tough disciplinary policies, and to gain new momentum for reforms. The underlying argument for doing this are three traps he has identified that that are critical to navigate to safeguard the power and survival of the party. The first is the Tacitus challenge (塔西佗陷阱), named after the ancient Roman philosopher, Tacitus. The argument is that if the party does not have the trust of the people, i.e. legitimacy, it does not matter whether the party tells the truth or not, or whether it does good or bad things nobody will believe what it says or does anyway. Therefore, the party needs to rebuild trust with its constituency, i.e. China’s ordinary citizens, primarily through measurably more equitable and inclusive development, not least to bring more people out of relative poverty. Insight Perspectives the core leader, Xi Jinping will be dominant in these negotiations. Even more, since five members of the Standing Committee are expected to retire due to age limits, the battlefield is wide open. Even the current prime minister, expected to continue on the Politbureau, may see himself sidelined to another position in the leadership to allow Xi the freedom to appoint his own prime minister. The Thucydides trap (修昔底德陷阱) is next. This time the reference is to an ancient Greek philosopher who argued that when a new great country rises, it must challenge or embattle the existing great countries to protect its development and position. Xi argues that while this is a risk for a rising China, the CPC does not see China as a threat or a menace to the world. Instead, China offers itself as a new opportunity to the world community. Xi’s numerous foreign policy and overseas investment initiatives should be judged fron this perspective. 9 Insight Perspectives Finally, China is facing a middle income trap (中等收入 陷阱). This concept stems from the 2006 World Bank report An East Asian Renaissance. The report pointed to the risk that some East Asian economies could end up with dwindling growth before becoming fully developed. To avoid the trap, middle income countries have to diversify their economy, accelerate innovation and equip workers with skills that allow them to adjust to new technologies. These are all focus points of Xi’s economic policies according to official Chinese sources. The Plenary last week dealt with the first trap, but it deferred the assessment of the results of the CPC’s substantial ongoing reform packages to next year’s Party Conference. They are meant to address the third trap. At that time, Xi Jinping will have to defend their outcomes as core leader. With regard to the second trap, Xi’s international policies, initiatives and activities testify to a solid effort to ensure global stability and peace to protect China’s rise. What comes after, is impossible to predict. But there will certainly be a new world order. Where do we stand? The Plenary last week strengthened Xi’s position as absolute top leader and he will undoubtedly carry on 10 with centralizing political and ideological control. His top down leadership style will continue, and party-state leaders at all levels will be even more alert to new signals, policies and instructions from Beijing if they carry his imprint. Xi’s vigorous anti-corruption campaign is, however, also pointing towards a cleaner party-state administration. Indications are that local officials across China have become cautious not to trespass the increasingly strict disciplinary regulations. However, Xi also continues to insist that the party must to control the party. Therefore, the party largely remains outside the reach of the law. If there is no independent authority to monitor and control the party, it is not unlikely that it may fall into old bad habits, because Xi will eventually be too busy with other things. While decentralization continues, local governments will have more and more say on a variety of matters. They depend however on local taxes for their daily operations and survival. The decisions at the Plenary last week could be seen as a helping hand to cleaner local government and a more transparent business environment. Since the local party-state administrations and their business ventures are laying low due to anti-corruption efforts and the demands for more transparency and accountability, the private sector will have more room to In sum, the Plenary Session confirmed Xi Jinping’s policies and endorsed his key position as the top leader of party, state and military. The situation around Xi seems to be stable, although there are grudges against him in the military. He is working frantically, with strong support from the official media, to demonstrate that he is on top of every conceivable political issue and agenda point, nationally and internationally. Whether he is overplaying his role is too early to say, but in case he succeeds in avoiding the three traps, it is likely that the designation as “core leader” will earn him a painting in the row of the existing Marxist-Leninist icons in China after Marx, Hegel, Lenin, Stalin, Mao and Deng. Insight Perspectives maneuver, become more prosperous and possibly contribute more to local coffers. Denmark, November 2, 2016 Front page – Table of Contents 11
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