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China Unveils Top Political Leadership; Xi Consolidates Power

--No Clear-Cut Successor To Xi Named To Panel
--Li Keqiang Retains No. 2 Seat
By Vince Morkri
     BEIJING (MNI)  - China on Wednesday unveiled the new lineup of the top
leadership of the Communist Party, the Politburo Standing Committee, as chosen
by the party's Central Committee.
     The latest iteration of the Standing Committee consists of seven members,
the same number as the previous version, with President Xi Jinping at the center
and Premier Li Keqiang continuing as the second-ranking member. The five other
previous members all retired, as they were all past the traditional Standing
Committee retirement age of 68. 
     The Standing Committee is the government's de facto decision-making body
whose rulings are regarded as having the force of law. Xi has installed at least
two men who are considered hard-core loyalists, and kept Li on board for another
five years. But no clear-cut successor to Xi was named to the panel, strongly
suggesting Xi is eyeing the possibility of staying in power beyond the end of
his second term as president and head of the party in 2022.
     The new Politburo Standing Committee members: 
     -- Xi Jinping, the general secretary of the party, is the "core" of the
Standing Committee. At 64, Xi enters his second five-year term as the country's
leader. During the 19th Communist Party National Congress over the past week, Xi
had his political beliefs  -- "Xi Jinping Thought On Socialism with Chinese
Characteristics for a New Era" -- elevated into the party Constitution as a
guiding principle. In essence, it outlines Xi's vision for national rejuvenation
and China's becoming a fully modern socialist nation by the middle of the
century. The congress also enshrined into the Constitution Xi's anti-corruption
fight, his "One Belt, One Road" infrastructure investment initiative to link
China with its Asian neighbors as well as Africa and central Europe, and his
campaign to implement supply-side industrial reforms and allow market forces to
play a key role in the allocation of resources. His anti-corruption campaign
since he took power in 2012 has snared several high-level Communist Party
officials and would-be political rivals, most notably former Politburo Standing
Committee member Zhou Yongkang and Chongqing party boss Sun Zhencai, and leaving
little room for malfeasance within the party. Xi is also the head of China's
military. Xi will be formally elected president in March at the National
People's Congress.
     -- Li Keqiang, 62, China's premier and head of the State Council, is the
second-ranking member of the Standing Committee. He is in charge of leading
China's economy into the "new era," theoretically characterized by high-tech
initiatives and innovation. Although Li had seemingly lost stature as Xi
consolidated power over all government functions the past several years, he has
lately gained a higher profile at party events. Li will be expected to help
further advance Xi's mandate for supply-side reform and economic rebalancing
while keeping environmental concerns at the fore and narrowing China's wealth
gap. 
     NEW MEMBERS:
     -- Li Zhanshu, at 67 the oldest member of the Standing Committee, is
perhaps Xi's closest confidant on the new committee and is known as Xi's
right-hand man, having effectively served as his chief of staff. Li is expected
to head the National People's Congress when the current chairman, Zhang Dejiang,
retires in March. Li is the current director of the Central Committee's General
Office, which he purged members who were reticent to submit to Xi's conservative
leadership. Li is the former party head of Guizhou, where his economic reform
initiatives led to GDP growth of 49% from 2010 to 2012. Li has known Xi since
1983, when both men served as party secretaries at the county level, Li in Wuji
County and Xi in Zhending County. Li at the time called on the people of Wuji to
learn from Zhengding's, and Xi's, model of economic liberalization. Li is now
considered to be No. 3 in the party hierarchy. 
     -- Wang Huning, 62, is the head of the Central Policy Research Center. As
the party's top political theorist, he has been one of the architects of recent
government policy initiatives. Wang is considered to be the "pen" of the
Communist Party -- driving the party's sloganeering campaigns, including Xi's
"China Dream" campaign, and is also seen as one of Xi's closest confidants.
During his years as an academic in the 1980s, Wang's writings focused on
"neo-authoritarianism," a theory that political stability, and power, serve as
the foundation for economic development. He is also considered to be an expert
on U.S. affairs. Wang also advised the presidential administrations of Jiang
Zemin and Hu Jintao. 
     -- Wang Yang, 62, has been elevated to executive vice premier, from vice
premier. He was previously the party boss of both Chongqing (2005-2007) and
Guangdong (2007-2012). He is expected to help Li Keqiang run the State Council,
China's cabinet, and so take a leading role in the upgrading of the Chinese
economy, especially in the foreign trade and agricultural sectors. He has been
described as a reformist and liberal, and is credited with developing the
"Guandong Model" of development, which emphasizes entrepreneurship and a more
civil society -- in other words, being in touch with the needs of ordinary
people. He is also known for his declaration as Guangdong chief that he would
"let the enterprises which must collapse collapse." In 1992, Wang, as mayor of
Tongling, in Anhui Province, won recognition from Deng Xiaoping for his
so-called Tongling Reform.
     -- Zhao Leji, 60, head of the Central Committee's Organization Department
-- which screens candidates for government-level jobs and is the government's
main corruption watchdog -- is expected to become the new anti-corruption czar,
replacing Wang Qishan. Zhao was previously the party head of Qinghai and Shaanxi
provinces. Zhao's tenure in Qinghai, starting when he was appointed to the
position of governor in 1999 to when he left as party chief in 2007, was marked
by a tripling in the province's GDP. Shaanxi also experienced rapid economic
growth under Zhao starting in 2007. Zhao will be expected to strengthen and
centralize Xi's corruption crackdown. 
     -- Han Zheng, 63, the party boss of Shanghai, where he also served as mayor
from 2003-2012, will head the Chinese People's Political Consultative
Conference, the party's top political advisory body. Han was noted for his
relative openness in leading Shanghai's government, and is close to former
President Jiang Zemin, who led China's economic transformation through the
1990s. Han presided over Shanghai as it became one of the busiest container
ports in the world and a major renminbi trading and clearing center. Han is
perhaps best known, however, for the jailing of his predecessor, Chen Liangyu,
for his role in the city pension fund corruption case, where CNY3 billion was
diverted from the fund to improper investments. 
--MNI Beijing Bureau; +86 (10) 8532-5998; email: vince.morkri@marketnews.com
--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com
[TOPICS: M$A$$$,M$Q$$$,MC$$$$,MT$$$$,MGQ$$$]

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