The Chinese Communist Party (CCP) concluded its 16th National Congress yesterday, with Vice President Hu Jintao (
TV footage of the congress shows delegates casting their votes in order. The voting results also came out as planned, an indication that the party maintains absolute control. The scene was reminiscent of the KMT's 5th National Congress in 1976, during which then president Chiang Ching-kuo (
The KMT and the CCP are fraternal twins born of the Soviet Communist Party's model -- but they followed very different paths of development. After retreating to Taiwan in 1949, the KMT followed an authoritarian capitalist road, liberalizing the economy while maintaining a tight grip on politics.
Later Taiwan's middle class became the mainstay of society and a driving force behind social and political liberalization. After the lifting of martial law and the ban on political parties and newspapers, the democratization process in Taiwan became irreversible. It led to the peaceful transition of political power in 2000 that saw the KMT become an opposition party.
Will the CCP follow in the KMT's footsteps? At this week's congress in Beijing, Jiang's "Three Repre-sents" dictum was incorporated into the party charter. The dictum labels businesspeople an "advanced force" on a par with labor and farmers. This has already sowed the seeds for qualitative change in the party.
The CCP can no longer claim to represent Maoist proletariat rule after a capitalist market mechanism was incorporated into "socialism with Chinese characteristics." Given the tremendous economic developments in Jiang's era, China no longer looks like a communist state. It uses its cheap labor, abundant resources and a huge market to attract investment and grab overseas markets. China is now more capitalist than many capitalist countries.
The CCP now looks like the KMT of 30 years ago -- a party facing the conflict between an open economy and an authoritarian political system. Economic development has created a formidable middle class and the party can no longer ignore this new force in society. The party must incorporate it. The people who attracted the most attention at this week's congress were not bureaucrats, but the new capitalist nobility.
The CCP's 16th National Congress marks the beginning of qualitative change in the party. The new generation of leaders must solicit help from business tycoons and the middle class to deal with the growing gaps between rich and poor and between regions as well as a rising unemployment rate. This in turn means party leaders must give more power to business leaders and the middle class to ensure their cooperation. This will be the beginning of quantitative change in the party.
The middle class was an important driving force behind the KMT's transition. Will it play a similar role in China? The just-concluded congress has planted the seeds for such change. Hopefully these seeds will grow into trees.
KMT Chairwoman Cheng Li-wun’s (鄭麗文) recent visit to Beijing and her upcoming visit to Washington will serve as a high-level test of her diplomatic mettle. In Beijing, Cheng was received with symbolic gestures, a warm reception, and high-level access. In Washington, she will receive far less pomp and far sharper questions about the KMT’s vision for the future of Taiwan. Her challenge will be to persuade Washington that the KMT’s engagement with China can coexist with strong deterrence. Cheng’s April 7-12 visit to mainland China coincided with an intense period of conflict in Iran. Despite the strategic significance of Cheng’s trip,
The closure of the Strait of Hormuz has sent the vast Asian chemicals industry into a tailspin. Deprived of the likes of Qatari natural gas and Saudi Arabian oil, the region’s fertilizer and plastics plants are slowing production or even shutting down. Everywhere except China, that is. In petrochemicals, China is unique. As well as a traditional industry that uses oil and gas as feedstock, it has parallel output that relies on its abundant domestic coal. Unsurprisingly, India and other regional powers want to copy and paste the Chinese method. This would not be easy — or climate friendly. The
History might remember 2026, not 2022, as the year artificial intelligence (AI) truly changed everything. ChatGPT’s launch was a product moment. What is happening now is an anthropological moment: AI is no longer merely answering questions. It is now taking initiative and learning from others to get things done, behaving less like software and more like a colleague. The economic consequence is the rise of the one-person company — a structure anticipated in the 2024 book The Choices Amid Great Changes, which I coauthored. The real target of AI is not labor. It is hierarchy. When AI sharply reduces the cost
US President Donald Trump recently repeated his claim that “Taiwan stole America’s chip industry,” reigniting public debate on the issue. As a former Taiwanese minister of economic affairs and an entrepreneur deeply involved in semiconductor supply chain development, I feel a responsibility to clarify this misunderstanding. From the perspective of global industrial evolution and the economic principle of comparative advantage, such a statement appears overly simplistic and risks obscuring the essence of the issue. The rise of Taiwan’s semiconductor industry was not built on “replacing America,” but rather emerged as a result of countries pursuing different development paths within the