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Newsmakers: Officials in the running for new China leadership

Hideyoshi Toyotomi

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Newsmakers: Officials in the running for new China leadership

By Ben Blanchard
BEIJING | Wed Nov 14, 2012 2:47am EST

(Reuters) - China's ruling Communist Party on Wednesday voted in a new Central Committee at the end of the week-long meeting, paving the way for the unveiling of a top leadership line-up the next day.

The committee will appoint a Politburo of about two dozen members and a Politburo Standing Committee, the innermost ring of power with possibly seven members, reduced from the current nine.

The Standing Committee is the party's peak decision-making body which will steer the world's second-largest economy for the next five years.

Only anointed successors Vice President Xi Jinping and Vice Premier Li Keqiang are considered certain to enter.

Following are short biographies of all the contenders, including their reform credentials and possible portfolio responsibilities.

XI JINPING

REFORM CREDENTIALS: Considered a cautious reformer, having spent time in top positions in Fujian and Zhejiang provinces, both at the forefront of China's economic reforms.

Xi Jinping, 59, is China's vice president and President Hu Jintao's anointed successor. He will become Communist Party boss and will then take over as head of state in March at the annual meeting of parliament.

Xi belongs to the party's "princeling" generation, the offspring of communist revolutionaries. His father, former vice premier Xi Zhongxun, fought alongside Mao Zedong in the Chinese civil war. Xi watched his father purged and later, during the Cultural Revolution, spent years in the hardscrabble countryside before making his way to university and then to power.

Married to a famous singer, Xi has crafted a low-key and sometimes blunt political style. He has complained that officials' speeches and writings are clogged with party jargon and has demanded more plain speaking.

Xi went to work in the poor northwest Chinese countryside as a "sent-down youth" during the chaos of the 1966-76 Cultural Revolution, and became a rural commune official. He went on to study chemical engineering at Tsinghua University in Beijing and later gained a doctorate in Marxist theory from Tsinghua.

A native of the poor, inland province of Shaanxi, Xi was promoted to governor of southeastern Fujian province in 1999 and became party boss in neighboring Zhejiang province in 2003.

In 2007, Xi secured the top job in China's commercial capital, Shanghai, when his predecessor was caught up in a huge corruption case. Later that year he was promoted to the party's standing committee.

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LI KEQIANG

REFORM CREDENTIALS: Seen as another cautious reformer due to his relatively liberal university experience.

Vice Premier Li Keqiang, 57, is the man tipped to be China's next premier, taking over from Wen Jiabao, also in March.

His ascent will mark an extraordinary rise for a man who as a youth was sent to toil in the countryside during the Cultural Revolution.

He was born in Anhui province in 1955, son of a local rural official. Li worked on a commune that was one of the first places to quietly revive private bonuses in farming in the late 1970s. By the time he left Anhui, Li was a Communist Party member and secretary of his production brigade.

He studied law at the elite Peking University, which was among the first Chinese schools to resume teaching law after the Cultural Revolution. He worked to master English and co-translated "The Due Process of Law" by Lord Denning, the famed English jurist.

In 1980, Li, then in the official student union, endorsed controversial campus elections. Party conservatives were aghast, but Li, already a prudent political player, stayed out of the controversial vote.

He climbed the party ranks and in 1983 joined the Communist Youth League's central secretariat, headed then by Hu Jintao.

Li later served in challenging party chief posts in Liaoning, a frigid northeastern rustbelt province, and rural Henan province, where activists have accused him of cracking down after an AIDS scandal. He was named to the powerful nine-member standing committee in 2007.

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WANG QISHAN

REFORM CREDENTIALS: A financial reformer and problem solver with deep experience tackling tricky economic and political problems.

Wang Qishan, 64, is the most junior of four vice premiers and an ex-mayor of Beijing. But he has a keen grasp of complex economic issues and is the only likely member of the Standing Committee to have been chief executive of a corporation, leading the state-owned China Construction Bank from 1994 to 1997.

Wang is an experienced negotiator who has led finance and trade negotiations as well as the Strategic and Economic Dialogue with the United States. He is a favorite of foreign investors and has long been seen as a problem solver, sorting out a debt crisis in Guangdong province where he was vice governor in the late 1990s and replacing the sacked Beijing mayor after a cover-up of the deadly SARS virus in 2003.

Wang is also a princeling, son-in-law of a former vice premier and ex-standing committee member, Yao Yilin. His possible portfolio could be the party's top anti-corruption official rather than having an economic brief though.

- - - -

LIU YUNSHAN

REFORM CREDENTIALS: A conservative who has kept domestic media on a tight leash.

Liu Yunshan, 65, may take over the propaganda and ideology portfolio for the Standing Committee.

He has a background in media, once working as a reporter for state-run news agency Xinhua in Inner Mongolia, where he later served in party and propaganda roles before shifting to Beijing.

As minister of the party's Propaganda Department since 2002, Liu has also sought to control China's Internet, which has more than 500 million users. He has been a member of the wider Politburo for two five-year terms ending this year.

Liu worked for the Communist Youth League for two years in Inner Mongolia from 1982-84, and is also aligned to it through his lengthy career in an inland, poor province, long ties to the party's propaganda system and close relationship with Hu Jintao.

- - - -

LI YUANCHAO

REFORM CREDENTIALS: A reformer who has courted foreign investment and studied in the United States.

Li Yuanchao, 61, oversees the appointment of senior party, government, military and state-owned enterprise officials as head of the party's powerful organization department.

Li, whose father was a vice-mayor of Shanghai, has risen far since his parents were persecuted and he was a humble farm hand during the Cultural Revolution.

Politically astute, Li can navigate between interest groups, from Hu's Youth League power base to the princelings.

As party chief in his native province, Jiangsu, from 2002 to 2007, Li oversaw a rapid rise in personal incomes and economic development, attracting foreign investment from global industrial leaders such as Ford, Samsung and Caterpillar.

He earned mathematics and economics degrees from two of China's best universities and a doctorate in law. He also spent time at Harvard University's Kennedy School of Government in the United States.

- - - -

ZHANG DEJIANG

REFORM CREDENTIALS: A conservative trained in North Korea.

Zhang Dejiang, 65, saw his chances of promotion boosted this year when he was chosen to replace disgraced politician Bo Xilai as Chongqing party boss. He also serves as vice premier in charge of industry, though his record has been tarnished by the downfall of the railway minister last year for corruption.

Zhang is close to former president Jiang Zemin who still wields some influence. He studied economics at Kim Il-sung University in North Korea and is a native of northeast China.

On his watch as party chief of Guangdong, the southern province maintained its position as a powerhouse of China's economic growth, even as it struggled with energy shortages, corruption-fuelled unrest and the 2003 SARS epidemic.

- - - - -

ZHANG GAOLI

REFORM CREDENTIALS: A financial reformer with experience in more developed parts of China.

Zhang Gaoli, 65, party chief of the northern port city of Tianjin and a Politburo member since 2007, is seen as a Jiang Zemin ally but also acceptable to President Hu, who has visited Tianjin three times since 2008. Zhang is an advocate of greater foreign investment and he introduced financial reforms in a bid to turn the city into a financial centre in northern China.

He was sent to clean up Tianjin, which was hit by a string of corruption scandals implicating his predecessor and the former top adviser to the city's lawmaking body. The adviser committed suicide shortly after Zhang's arrival.

A native of southeastern Fujian province, Zhang trained as an economist. He also served as party chief and governor of eastern Shandong province and as Guangdong vice governor.

Zhang is low-key with a down-to-earth work style, and not much is known about his specific interests and aspirations. But with his leadership experience in more economically advanced cities and provinces, including party secretary of the showcase manufacturing and export-driven city of Shenzhen, he could be named executive vice premier.

- - - - -

WANG YANG

REFORM CREDENTIALS: Seen by many in the West as a beacon of political reform.

Wang Yang, 57, is party chief of the export-dependent economic hub of Guangdong province. He was not included in a list of preferred Standing Committee candidates drawn up by Xi, Hu, and Hu's predecessor, Jiang Zemin, according to sources close to the leadership, but is still in the running.

Born into a poor rural family in eastern Anhui province, Wang dropped out of high school and went to work in a food factory at age 17 to help support his family after his father died. These experiences may have shaped his desire for more socially inclusive policies, including his "Happy Guangdong" model of development designed to improve quality of life.

Concerned about the social impact of three decades of blistering development, he lobbied for social and political reform. However, this approach has drawn criticism from party conservatives and Wang has more recently adopted the party's more familiar method of control and punishment to keep order.

- - - - -

YU ZHENGSHENG

REFORM CREDENTIALS: Relatively low-key but appears flexible to ideas of reform.

Yu Zhengsheng, 67, is party boss in China's financial hub and most cosmopolitan city, Shanghai.

During the party congress, Yu said he believes officials will eventually have to declare their assets publicly, as the party battles persistent corruption.

His impeccable Communist Party pedigree made him a rising star in the mid-1980s until his brother, an intelligence official, defected to the United States. His close ties with Deng Pufang, the eldest son of late paramount leader Deng Xiaoping, spared him the full political repercussions but he was taken off the fast track.

Yu bided his time in ministerial ranks until bouncing back, joining the Politburo in 2002. However, the princeling's age would require him to retire in 2017 after one term.

LIU YANDONG

REFORM CREDENTIALS: Uncertain.

Liu Yandong, who turns 67 this month, is the only woman given a serious chance to join the Standing Committee. She is a princeling also tied to President Hu's Youth League faction.

If promoted, she could head up parliament's advisory body, but her age would also force her to retire after only one term.

Her bigger challenge is that no woman has made it into the Standing Committee since 1949. Not even Mao's widow, Jiang Qing, made it that far.

Liu, daughter of a former vice-minister of agriculture, is currently the only woman in the 25-member Politburo. She has been on the Politburo since 2007 as one of five state councillors, a rank senior to a cabinet minister but junior to a vice-premier.

(Edited by Sui-Lee Wee and Nick Macfie)
 

General Kala

Alfrescian (Inf)
Asset

China central bank chief Zhou off key Communist committee


(Reuters) - China's central bank governor, Zhou Xiaochuan, is likely a step nearer retirement on Wednesday after his name was left out of a key policymaking group of the ruling Communist Party.

Zhou's name was a notable absence from the list of 205 members of the party's Central Committee, membership of which is a condition of holding a cabinet-ranked job.


 

Hideyoshi Toyotomi

Alfrescian
Loyal

China rails against protectionism at party congress


By Nick Edwards
BEIJING | Wed Nov 14, 2012 2:05am EST

(Reuters) - China's top trade and investment officials are railing against what they call a rising tide of global protectionism that blocks its major companies from expanding overseas and further integrating into the global economy.

The officials, speaking on the sidelines of a week-long Communist Party Congress, said protectionism was emerging across the world, not just in the West. It damaged global growth, frayed relations and could see China focus its investments in neighboring Asian nations, the officials said.

"We are against it," Industry Minister Miao Wei told reporters on Wednesday when asked what he thought about protectionism as he left the Great Hall of the People after the closing session of the congress.

Commerce Minister Chen Deming had set the tone earlier last week, deriding the "Cold War mentality" of Washington lawmakers who urged U.S. firms in a landmark report last month not to do business with two top Chinese telecom equipment makers because of risks to national security.

He was followed by Lou Jiwei, chairman and CEO of China Investment Corporation, who told Reuters a rise in protectionism was forcing a rethink at the country's $482 billion sovereign wealth fund, which would not spend money in countries "that do not welcome us".

"There are other places to invest," Lou said.

Asia is a particularly favored option for CIC, thanks to some of the fastest rates of growth and development in the world - which are themselves levered to China's own economic dynamism.

Li Ruogu, president of the Export-Import Bank of China, which is a main source of loans for Chinese firms investing abroad, complained of "added layers of protectionism" being stacked up against China's increasingly outward-looking companies.

Comments in between from bosses of some of the biggest state-owned enterprises - all of which have a Communist Party secretary at the top of their management structure - have reinforced views in some quarters that Beijing is becoming increasingly sensitive to protectionism.

Fu Chengyu, chairman of China's oil giant Sinopec Group, said in London on Tuesday that politics made deals in the West increasingly difficult.

Sinopec's rival, CNOOC Ltd, is struggling to win regulatory backing from Canada's government for a $15.1 billion bid for Nexen Inc. A decision has been repeatedly delayed even though it has been approved by shareholders.

Even before the congress started, officials from government-run think-tanks that directly feed into policymaking had spoken to Reuters about a perceived rising tide of protectionism and how China might best try to turn it.

RISING RHETORIC

China's trading partners, in turn, complain that state-backed companies they compete with globally get unfair support from Beijing - either through subsidies, tax breaks, cheap bank loans, or a deliberately undervalued currency.

Since joining the WTO in 2001, China has had 29 complaints of unfair trade practices brought against it. Around two thirds have been launched by the United States and the European Union, with others coming from a mix of developing and developed economies.

Foreign analysts though see recent rising rhetoric driven by political transition in both Washington and Beijing, a rash of troubled cross-border takeovers and the toughest conditions in three years for the country's export-focused factory sector.

"This is playing to a domestic audience in the sense that a lot of manufacturers, a lot of exporters, aren't doing too well and they are putting pressure on the Ministry of Commerce to do something," Alistair Chan, an economist at Moody's Analytics, told Reuters.

"There isn't a lot that the government can do to help global demand, but one thing they can do is advocate for less protectionism. In terms of an actual trade war, I think that risk is quite minimal."

China's economy depends heavily on trade and investment flows. Exports were worth about 31 percent of GDP in 2011, according to World Bank data, while an estimated 200 million Chinese jobs are in the export sector or supported directly by foreign investment.

China's rapid rise to become the world's biggest exporter and its second biggest economy in the space of barely three decades since landmark economic reforms began in the late 1970s have sparked concerns among the developed economies it is eclipsing and the emerging markets which it dwarfs.

The U.S. election campaign was notable for China-bashing. Defeated candidate Mitt Romney had promised to label Beijing a currency manipulator if he won and while President Barack Obama was less confrontational, he cited his credentials as bringing more trade cases against China than his predecessor.

JOBS FEARS

There is a widespread view in the United States that trading with China has caused American firms to slash jobs.

The Economic Policy Institute, a think-tank focused on the needs of low- and middle-income workers, reckons that 2.7 million jobs were lost in the United States between 2001 and 2011 as a result of increased trade with China - 2.1 million of them in manufacturing industry.

Meanwhile research from consultancy Rhodium Group in September analyzed 600 Chinese direct investment transactions in the United States between 2000 and 2012, concluding that U.S. units of Chinese majority-owned firms directly supported 27,000 jobs.

Assuming a steady investment trend, Rhodium reckons that number would jump to 200,000-400,000 by 2020.

Beijing is targeting outbound direct investments of $560 billion between 2011 and 2015.

Analysts estimate China could spend $2 trillion globally on FDI in the next 10 years, a salivating proposition for many of the world's top economies struggling for growth and employment opportunities - but a risk for politicians who see government-backed entities on the hunt for strategic assets, investors say.

Andrew Morris, managing director of UK fund firm Signature, reacted to news earlier this month that CIC had taken a 10 percent stake in Heathrow Airport by lambasting the British government for not doing more to preserve "our nation's prized assets... being hoovered up by 'foreign powers'."

(Additional reporting by Beijing Bureau; Editing by Raju Gopalakrishnan)
 

Hideyoshi Toyotomi

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Loyal

China party enshrines tighter oversight after Bo Xilai scandal


By John Ruwitch and Michael Martina
BEIJING | Wed Nov 14, 2012 1:22am EST

(Reuters) - China's ruling Communist Party amended its guiding charter on Wednesday to tighten oversight of officials, a move reflecting the depth of concern about abuse of power in the wake of a scandal involving former political heavyweight Bo Xilai.

The closing session of the five-yearly party congress also changed the party constitution to explicitly endorse reform and opening as "the path to a stronger China" and made a nod towards growing environmental problems by promoting "ecological progress" as part of the party's development strategy.

"The party should attach greater importance to conducting oversight of cadres," the amendment said.

This would help improve "public trust in the selection and appointment of party cadres" and encourage top officials to be better examples, said a statement from the congress.

Bo, once widely considered a contender for top office, was expelled from the party this year and faces possible charges of corruption and abuse of power. His wife was jailed for murdering a British businessman in a scandal that has shaken the country and raised unsettling questions about the party's leadership.

President Hu Jintao warned in his state-of-the-nation address to the congress last week that corruption threatened the party and the state.

Without an independent judiciary, efforts to fight graft, a key driver of social unrest in the world's second-largest economy, will almost certainly falter, and the control-obsessed party has shown no sign of embarking on this reform.

But the party said there would be no reversing down the road to economic opening up, a policy begun some three decades ago, kicking off China's on-going boom.

"It is reform and opening up that will ensure China's future development," it said.

The party charter is less a legal document than a compilation of the ideological justifications the Communists have accumulated - and often quietly shelved - in their 91-year evolution from a rag-tag troupe of idealistic revolutionaries to cautious leaders of the world's most populous nation.

Party congresses are highly choreographed events that anoint new leaders, set the direction of the country's policy compass, and are an occasion for outgoing politicians to cement their legacies and perhaps designate their successors.

The charter also added outgoing party chief Hu Jintao's theory promoting equitable and sustainable development alongside Marxism-Leninism, "Mao Zedong Thought", "Deng Xiaoping Theory" and Hu's immediate predecessor Jiang Zemin's "Three Represents" theory as a guiding ideology, cementing Hu's legacy.

In 2002, Jiang's "Three Represents" was written into the party charter, stamping his imprint by opening the door to private entrepreneurs entering the party.

Hu is expected to be replaced as general secretary of the party by Xi Jinping, the current vice president, on Thursday.

(Additional reporting by Sui-Lee Wee, Michael Martina and Ben Blanchard; Editing by Nick Macfie)
 
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