Chinese President Xi Jinping’s (習近平) status was elevated even further during a twice-a-decade Chinese Communist Party National Congress that ended on Tuesday.
Not only did he give a lengthy speech where he laid out his vision for China as a global power by 2050, his name and ideology were written into the party’s constitution.
Only one other leader, Mao Zedong (毛澤東), managed that while still in office. Others had their ideology included as a guiding principle, but after they stepped down.
Illustration: Mountain people
With his policies permeating all aspects of the party, giving Xi a status that allows him to effectively rule well beyond the end of his current term in 2022, what does “Xi-ism” mean in a practical sense?
Xi’s ideology is “a strategy for turning the Chinese Communist Party into an ideologically unified, pristine organization that, under the leadership of a charismatic leader, will bring about the economic, political, social and cultural rejuvenation of the great Chinese nation,” Hong Kong University of Science and Technology political science professor David Zweig said.
The aim is for “China to reassert its rightful place as a leader of the world,” he said.
What is Xi’s main theory?
A key phrase inserted into the constitution was: “Xi Jinping thought on socialism with Chinese characteristics for a new era.”
That makes Xi the architect of a third major period for China under Chinese Communist Party rule since 1949 and it builds on former leader Deng Xiaoping’s (鄧小平) earlier mantra of “socialism with Chinese characteristics.”
The first era, under Mao, saw the unification of China after a protracted civil war that followed the nation’s occupation by foreign powers since the Opium Wars of the 1840s.
Mao established China as a communist state with a socialist economy.
The second era is associated with Deng consolidating the party’s power with the careful introduction of capitalism into the economic structure and the pursuit of a broad goal of prosperity for citizens.
What is socialism with Chinese characteristics?
Exactly that. Socialism, but with a Chinese bent.
It differs from Soviet Union socialism in the larger role for markets in the allocation of resources, an emphasis on decentralization and a smaller role in the economy, in theory, for state-owned enterprises.
Setting out a vision for China as a global economic and military power by 2050, with a thriving middle class, strong military and clean environment, builds on what Xi has said before about achieving a “Chinese dream” of national rejuvenation.
That all points to a more expansionist China, using initiatives such as investment in nations along trade routes — known as the Belt and Road Initiative — to Europe to grow clout.
Xi plans to continue modernizing the military with a focus on projecting force outward, namely a bigger and better navy and air force.
Under his rule, China is set to remain assertive on territorial claims in disputed areas including the South China Sea and East China Sea.
What else can we glean from Xi’s words?
The “new era” under Xi is expected to include a greater focus on tackling social inequality —. rather than economic growth for growth’s sake — in part to guard against the risk of social unrest and threats to the party’s power.
Xi’s speech and the revisions to the party’s constitution suggest the market would still play a “decisive role” in the economy, but with the party paramount when it comes to policy.
The president has set out signposts to be achieved along the way — build a moderately prosperous society by 2020, join the most innovative nations by 2035 and achieve a first-class military by 2050.
What does it mean for the economy?
A greater focus on quality of life reflects a recognition by Xi that along with China’s massive increase in wealth, the divide between rich and poor has widened.
Failure to meet the needs of a growing middle class seeking clean air and the angst of those left behind by development risks undermining the legitimacy of the party.
Economists say this suggests policymakers have more leeway to let near-term growth slip as they focus more on environmental issues and social equality.
The inclusion of the phrase “advance supply-side structural reform” in the party’s constitution could suggest a greater emphasis in this area.
It has been part of Xi’s focus on cutting overcapacity and reducing leverage, while boosting domestic demand.
At the same time, Xi’s reference to developing an “open economy” could mean more measures to attract foreign investment.
What does it mean for Chinese companies?
There has been a clear message: The world’s second-largest economy must achieve balanced growth that reduces inequality.
Jack Ma (馬雲), China’s richest person and founder of Alibaba Group Holding Ltd, told a state publication that entrepreneurs who have obtained affluence have a responsibility to help others catch up.
Haier chairman Zhang Ruimin (張瑞敏) echoed those comments.
Property mogul Wang Jianlin (王健林) was separately cited as saying his Dalian Wanda Group Co has mapped out its business strategy in line with Xi’s call.
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