Zero Hedge: Meet The New China – Same As The Old...

Zero Hedge: Meet The New China – Same As The Old China?

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Just before the US election, we laid out the details and implications of the ‘other’ major ‘election’ occurring in the world – that of China’s Supreme Leader of Awesomeness. Last night the details were announced of the makeup of the new Politburo Standing Committee. As Bloomberg notes, the panel – the most powerful decision-making body in China – was reduced from nine to seven members and will be led (unsurprisingly) by Xi Jinping. Perhaps, in a lesson for our own politicians, the ‘new’ committee is ‘bipartisan’ with five members from Xi Jinping’s own Jiang Zemin faction and two members from Hu Jintao’s faction (more a balance of reformers and reactionaries). But, in a similar vein to the US, as The Diplomat’s David Cohen notes,”If Xi is to achieve even the economic policy goals that already appear to enjoy consensus support in Beijing, he will need to find ways of overcoming some of the largest entrenched interest groups in contemporary China.  To do so, he may have to set about creating new entrenched interest groups.”

Adjusted from Goldman Sachs: The New Politburo…

Via The Diplomat’s David Cohen: Xi Jinping’s Economic Challenge,

For months, China watchers have been vying to predict whether reformers or reactionaries would prevail at this week’s Party Congress – and now that it’s here, analysts have had to begin debating what has actually happened.  Despite the importance of factional politics within the Party, what will determine whether major economic reforms are able to take place in the next year is not a contest of ideologies, but a test of political acumen – specifically, the power of China’s top leaders to control the three vast machines of China’s party, government, and state-owned enterprises (SOEs).  If Xi is to achieve even the economic policy goals that already appear to enjoy consensus support in Beijing, he will need to find ways of overcoming some of the largest entrenched interest groups in contemporary China.  To do so, he may have to set about creating new entrenched interest groups.

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