The mysterious leadership transition in China is due for a handover of power to the ‘5th generation’ of communist party leaders on November 8 that will rule the world’s second largest economy for the next 10 years. Xi Jinping is expected to become general secretary of the Chinese Communist Party (CCP) and the president of China. He is expected to serve two five-year terms.
The heads of world governments will be watching closely to see what happens next?
Xi Jinping is the leading “Shanghai clique” or “princelings”, a scion of the first generation Communist chiefs — politically powerful with significant experience running the china’s economically strong coastal provinces. Xi Jinping’s father Xi Zhongxun, former vice-premiere, gained favor with Hu Yaobang who had been chairman of the Communist Party from 1981 -1982.
Xi Zhongxun was re-instated under Deng Xiaoping and put in charge of economic reform in Guangdong province which spearheaded China’s transformation.
The Politburo Standing Committee (PSC) consists of a group of 25 leaders who lead the communist party and 14 of these members are expected to change. Xi Jinping was in charge of the Beijing Olympics in 2008 and is responsible for policy on Hong Kong.
“The political transition is important not only because of China’s growing presence in the world economy, but also because of the power the Chinese government has to shape its economy,” said Justin Harper, Market Strategist at IG Markets in Singapore.
“Say in the U.S. or the UK, you get a change of leaders, broadly speaking that does not tend to have a big impact on the economy. That’s not the case in China, where the government wields so much power a change in leadership really can have a big impact on the direction of the economy,” he said.
Xi Jinping, currently the vice-president, and Li Keqiang, currently the vice-premier, are tipped to become China’s next president and premier respectively, taking over from President Hu Jintao and Vice President Wen Jiabao.
Xi Jinping and China’s Politics: