ANALYSIS: Xi administration uses balancing act in putting together reform package

17 Novembre 2013 , Rédigé par ileridefense Publié dans #Asie

BEIJING--Having served as general secretary of the Chinese Communist Party for just under a year, Xi Jinping had to navigate a delicate balancing act as he put together the reform package that was decided on this week.

The communique released Nov. 12 at the end of the third plenary session of the 18th Central Committee contained not only measures intended to tighten party control over society, but also proposals designed to open up the economy.

The mix was intended to placate conservative and progressive elements within the party who are eager to protect their particular vested interests. The need for balance may have been one reason for a lack of specific reform measures in the communique.

One proposal that exemplifies the desire for greater control was the establishment of a new state security committee.

Qin Gang, a Chinese Foreign Ministry spokesman, referred to the matter by saying, "Elements that threaten China's security, such as terrorists and religious radicals, are likely now on high alert."

According to several party sources, the new committee will not only respond to domestic terrorists and riots, but also be in charge of national security issues abroad.

The committee would oversee the various government agencies now in charge of public security, state security, the military, diplomacy and intelligence.

There is speculation the new committee would be raised to the same political footing as the State Council and the National People's Congress.

A diplomatic source said Xi would likely serve as the head of the new committee. That position would give the party's top leader control over a powerful security maintenance mechanism.

Nov. 15 will mark Xi's first anniversary since taking over as general secretary.

He has taken steps to strengthen party discipline, including efforts to weed out corruption.

Since July, efforts have been made around China to criticize party members who have strayed from the party line or upset discipline.

In August, a national conference on ideology and propaganda was held, during which a call was made for "solidifying correct political standing in order to resolutely protect the authority of the party's Central Committee."

Some say that meeting was the trigger for a tightening of control over opinion circulating on the Internet.

Those series of policy measures disappointed many reform-minded party members and intellectuals. One high-ranking official of a media company said, "The speed at which expectations have shrunk is much faster than under the administration of (Xi's predecessor) Hu Jintao."

The tighter political controls may have been the price that had to be paid for continuing with economic reform needed for further growth.

However, a political scientist whose father once held a Cabinet-level post said, "The policies being proposed by General Secretary Xi should not be seen as either conservative or progressive, but as an aggregation of efforts to restore the party's authority and trust."

In October, a major celebration was held to mark the centennial of the birth of Xi's father, former Vice Premier Xi Zhongxun. Xi Zhongxun, who had been purged during the Cultural Revolution, was applauded for his role in the economic reform and open-door policy after his honor was restored.

One particular attendee at the special program produced by the Communist Party and central government was Wen Jiabao, the former premier who once served as an aide to Hu Yaobang, the reform-minded leader of the 1980s who once served as general secretary.

In the program, Wen said, "Zhongxun supported Hu in his efforts to push forward with reform."

At a commemorative panel discussion attended by Xi Jinping, one of the invitees was Hu Deping, the son of Hu Yaobang and considered an advocate of reform.

A diplomatic source in Beijing said Hu gave as his reason for attending, "I understood the ceremony to be a clear denial of the Cultural Revolution as well as an affirmation of reform."

However, Xi has still not shown whether his political standing is as a progressive or conservative.

A sociologist in Beijing said, "He is a pragmatist willing to employ elements of the right and left in order to maintain a Communist Party administration."

Although the communique also said that markets would play a decisive role in the Chinese economy, the market in China appeared disappointed at the lack of specifics.

Chinese stock markets normally react sensitively to changes in policy, but the Shanghai composite index fell by 1.8 percent on Nov. 13.

A business newspaper reported that markets felt the reform package from the third plenary session did not have sufficient specifics.

While some mention was made in the communique of the need for reform in such areas as administration, tax and fiscal policy, finance, and opening up to foreign interests, there was little in the way of radical proposals for change.

Expectations for further liberalization were also dashed by the wording about state involvement in the economy. The communique said public ownership of property would continue to be the mainstream of the economic system and indicated state-owned companies will continue to play a major role.

Chen Wei, an analyst with China Minzu Securities Co., said, "There is little hope of drastic reform of state-owned companies and having the market play a decisive role is still nothing more than a distant goal."

The problem of farmers having to give up their land at rock-bottom prices was also addressed in the communique with wording calling for farmers to also benefit from the results of modernization.

However, the specific measure mentioned to achieve that goal was the creation of a unified market covering urban areas and farming villages for real estate to be used for construction purposes. That proposal was also made by the third plenary session held five years ago, but little progress has been made.

One reason is that local governments rely on the gains from the subsequent sale of farmland for revenues. In order to come up with other revenue sources for local government, the central government will have to implement reform measures that cut across a wide range of sectors.

By Nozomu Hayashi and Tokuhiko Saito

Asia & Japan Watch by The Asahi Shimbun

2013.11.14

General Secretary Xi Jinping, center, and other Politburo Standing Committee members vote on a proposal at the third plenary session of the 18th Central Committee, Nov. 12. (AP Photo)

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