China’s 19th National Congress: Some key policy points for business

October 19, 2017

BEIJING – Announcements made at the 19th National Congress of the Communist Party in Beijing have significant implications for global trade, investment and security. The following reports touch on some key elements, including Socialism with Chinese Characteristics; China’s anti-graft campaign; Proposed establishment of Communist Party cells within foreign firms; a negative list for market access in China nationwide; and plans to deepen financial reforms.

CPC opens 19th National Congress, declaring “new era” of China’s socialism

 Source: Xinhua

The Communist Party of China (CPC) has rolled out the "Thought on Socialism with Chinese Characteristics for a New Era" and embarked on a journey to build a "great modern socialist country" as its 19th National Congress opened Wednesday.

Delivering a report at the opening session, Xi Jinping outlined a two-step approach to build China into a great modern socialist country after the completion of building a moderately prosperous society in all respects by 2020.

According to Xi's report, China will see that socialist modernisation is basically realised from 2020 to 2035. From 2035 to the mid-21st century, China will be developed into a great modern socialist country that is prosperous, strong, democratic, culturally advanced, harmonious, and beautiful.

The Chinese nation has stood up, grown rich, and become strong, and it now embraces the brilliant prospects of rejuvenation, Xi said. "Scientific socialism is full of vitality in 21st century China."

 

CPC creates Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era

 Source: Xinhua

The Chinese Communists mainly represented by Xi Jinping have created Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, leading Party officials said Wednesday. "The Thought is the biggest highlight of the 19th National Congress of the Communist Party of China (CPC) and a historic contribution to the Party's development," said Zhang Dejiang, when joining a panel discussion at the Congress opening.

The Thought on Socialism with Chinese Characteristics for a New Era builds on and further enriches Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory, the Theory of Three Represents, and the Scientific Outlook on Development, according to a report delivered by Xi Jinping at the opening of the Congress.

The report listed 14-point fundamental principles of the Thought, ranging from ensuring Party leadership over all work to promoting the building of a community with a shared future for mankind.

 

CPC promises “a better life” for its people in key report

 Source: China Daily

The Communist Party of China has vowed to satisfy the people's desire for "a better life" and written the idea into a key political document, as the latest assertion of the Party's people-centred approach.

The Chinese phrase "mei hao sheng huo", which can be translated as "a better life" or "a happy life", appeared 14 times, including in both the opening section and the last paragraph, in a report given by Xi Jinping on Wednesday at the opening of the 19th CPC National Congress.

"What we now face is the contradiction between unbalanced and inadequate development and the people's ever-growing needs for a better life," Xi told more than 2,200 delegates from all walks of life attending the Congress.

The needs to be met for the people to live a better life are increasingly broad, according to Xi. Not only have their material and cultural needs grown, their demands for democracy, rule of law, fairness and justice, security, and a better environment are also increasing, he said.

 

Xi pledges “sweeping victory” in anti-corruption

 Source: Xinhua                                                   

The Communist Party of China (CPC) will secure a "sweeping victory" in its fight against corruption to avoid the historical cycle of rise and fall, Xi Jinping said Wednesday at the opening of the 19th CPC National Congress.

Calling corruption "the greatest threat" the Party faces, Xi said the fight against corruption never ends and currently remains grave and complex. "We must remain as firm as a rock in our resolve to build on the overwhelming momentum and secure a sweeping victory," he said.

Xi said China will set up supervisory commissions at the national, provincial, city, and county levels, which share offices and work together with the Party's disciplinary inspection commissions.

Supervisory commissions will be given responsibilities, powers, and means of investigation in accordance with law. A national supervision law will be formulated.

Shuanggui, an intra-party disciplinary practice that requires a Party member under investigation to co-operate with questioning at a designated place and a designated time, will be replaced by detention as the reform of the national supervision system deepens.

 

China’s anti-graft fight has consolidated “crushing momentum”: communique

 Source: Xinhua

China has gained and consolidated "crushing momentum" in its fight against corruption, according to a communique released Saturday. The communique was issued after the Seventh Plenary Session of the 18th Central Committee of the Communist Party of China (CPC), which was held in Beijing from Octpber 11 to 14.

The discipline inspection commissions have been working hard to build a clean Party and fight corruption, firmly upholding the eight-point frugality code, according to the communique.

The communique also stated that the commissions have made full use of their inspections, prioritising discipline, and have deepened the reform of discipline inspection and the country's supervisory system.

Moreover, the commissions have built groups of cadres in discipline inspection and supervision that both the Party and the people can trust, while consistently improving the accountability system, uncompromisingly containing the spreading of corruption and purifying the political ecology within the CPC, the communique said.

 

China says foreign firms welcome benefits from internal Communist Party cells

Source: Reuters

Foreign companies operating in China have welcomed the ruling Communist Party to set up cells in their firms, as a way of helping them understand Chinese policies and resolve disputes, a senior party official said on Thursday.

Party cells in foreign firms have been well received, said Qi Yu, a deputy head of the Communist Party’s Organisation Department.

“Senior executives at some foreign invested companies say party organisations can help them to understand in a timely manner Chinese policies, to resolve salary disputes, and provide positive energy for the company’s development,” said Qi.

A U.S. executive had said his best workers were party members, said Supervision Minister Yang Xiaodu, who is also a deputy at the party’s graft-busting Central Commission for Discipline Inspection.

 

Xi says China to introduce negative list for market access nationwide

Source: Xinhua

Xi Jinping said Wednesday that China will introduce a negative list for market access across the country, and support the growth of private businesses. A negative list model is one that, in accordance with laws and regulations, clearly states sectors and businesses that are off limits to some market entities.

"We will introduce a negative list for market access nationwide, sort through and do away with regulations and practices that impede the development of a unified market and fair competition, support the growth of private businesses, and stimulate the vitality of various market entities," he said.

 

Xi says China will continue to open its economy, deepen financial reforms

Source: Reuters

 Speaking at the opening of China’s Communist Party Congress, President Xi Jinping pledged to further open China’s services sector to foreign investors. “China’s open door will not be closed, it will be only be opened wider,” Xi said.

Xi said China will deepen economic and financial reforms and further open its markets to foreign investors as it looks to move from high-speed to high-quality growth. It would also push ahead with market-oriented reforms of its foreign exchange rate and financial system, and let the market play a decisive role in the allocation of resources.

 

Central Bank says stable yuan likely soon

 Source: China Daily                                            

Yuan exchange rates will have a more stable foundation after the 19th National Congress of the Communist Party of China and the market will have a bigger role in determining the currency's value, a top central bank official said on Wednesday.

The People's Bank of China, the central bank, has almost withdrawn its "regular" intervention in the foreign exchange market, Pan Gongsheng, Head of the State Administration of Foreign Exchange, said while attending the Congress.

"We can also see that the exchange rate is more market-driven and has been more stable recently," said Pan, who is also a Deputy Governor of the central bank.

The bank released a report on its website on Tuesday saying that it will continually facilitate the yuan's internationalisation to reflect a more stable position in the global monetary system. The PBOC also expects yuan usage to rise so that it can play a more important role as a global reserve currency.

 

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