12 Oct '17, 11am

Xi’s power grab might drag the economy down https://t.co/oXsjr3H3SC

Author: Yukon Huang, Carnegie Endowment China’s 19th Party Congress is all set to confirm President Xi Jinping’s consolidation of power. But for many China watchers, the question is whether economic reforms will accelerate afterwards. For China’s leaders, delivering the growth agenda is critical to preserving the credibility of the Chinese Communist Party (CCP). This legitimacy could be questioned in the event of a dramatic slowdown in growth, yet whether the right policies will be implemented to prevent this is still unclear. The answer is likely to depend on how Xi resolves the major contradiction highlighted in the CCP’s 2013 Third Plenum reform statement. The statement proposed that the market should play a ‘decisive’ role in resource allocation, but it also reaffirmed that the state would continue to play a ‘leading role’ in the economy. This ambiguity has clouded the...

Full article: http://www.eastasiaforum.org/2017/10/12/xis-power-grab-mi...

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