rayloke2009blogspot: Experts detail 5 challenges for China

Thursday, November 22, 2012

Experts detail 5 challenges for China - CNN.com

1 comment:

RAYLOKENovember 22, 2012 at 6:53 PM
His predecessor Hu Jintao fired a flare on the first day of the Congress about the threat of corruption and its power to potentially bring down China's Communist regime.

"If we fail to handle this issue well, it could prove fatal to the party, and even cause the collapse of the party and the fall of the state," he told delegates.

China's next leaders: Who's who

CNN asked five experts to explain what they see to be China's most pressing challenge. It's by no means a complete list, presented in no particular order.

1. Factional divisions

Plenty of analysis has accompanied this year's Congress as to the fine -- and not so fine -- lines that split the ideologies and loyalties of the members of the Politburo Standing Committee.

But will any fracture lines be enough to tilt the Party towards reform? China commentator Willy Lam weighs in, noting that "even before the birth of the People's Republic in 1949, factions within the party had fought over the future direction of the country."

Xi JinpingThe "struggle between two lines" during Mao's rule has morphed into divisions according to family ties to revolutionary leaders and guidance from powerful mentors.

Li Keqiang"Since the early 1990s, three major factions have emerged within the party: the Shanghai faction led by ex-president Jiang Zemin, the Communist Youth League (CYL) faction led by President Hu Jintao, and the "Gang of Princelings" -- a reference to the offspring of party elders -- led by president-in-waiting Xi Jinping.

What's the potential for one to win out? Lam explains.

2. More spending, less saving

In 2011, a team of researchers led by economist Li Gan started asking questions to compile the most comprehensive study so far of household wealth in China.

They found that the top 10% of income earners are sitting on most of the wealth.

The low savings rate of most Chinese households surveyed suggest they simply don't have the money to spend. To move toward a consumer-based economy, therefore, raising the income -- and spending -- levels for the poor is key.

Gan explains here what China needs to do.

3. Pouring water on disputes

Don't expect China to turn the other cheek when it comes to regional disputes, writes Stephanie Kleine-Ahlbrandt from International Crisis Group.

"Beijing is keen to prevent the world from concluding that China has discarded the notion of a peaceful rise," Kleine-Ahlbrandt writes. She says China's going down the path of "reactive assertiveness."

One example is China's attitude in response to Japan's purchase of islands disputed by both countries in the East China Sea.

Find out whether Kleine-Ahlbrandt thinks the country's new leaders are likely to change tact.

ReplyDelete
Replies