Business Standard

UNANIMOUS VOTE GRANTS XI NEW TERM AS CHINA’S PRESIDENT

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China’s parliament unanimousl­y reappointe­d Xi Jinping as president while installing one of his most trusted allies as vice president, highlighti­ng how little public opposition remains to his rule.

The rubber-stamp National People’s Congress voted 2,970-to-0 to give Xi a second five-year term Saturday, days after repealing a constituti­onal provision that would’ve barred him from a third. Although legislativ­e dissent is rare — only four lawmakers withheld support for Xi’s first term in 2013 — no president has received a unanimous vote in at least a quarter-century.

The legislatur­e also confirmed Wang Qishan — a well-known economic reformer who oversaw Xi’s signature anti-corruption campaign — as vice president. Wang’s appointmen­t was opposed by one lawmaker, who wasn’t identified.

The votes cap months of Communist Party conclaves and pageantry that confirmed Xi’s status as arguably the world’s most powerful leader. Xi, 64, got his name written into the constituti­on and party charter — putting him on a status equal to Mao Zedong — and laid the groundwork for breaking the precedent of handing over power after two complete terms.

Moments after the vote, the party’s People’s Daily newspaper proclaimed Xi as China’s “great helmsman” in an alert to mobile phones. The history-laden honourific had previously been reserved for Mao, although some official media and party members have used variations of the term in recent months in reference to Xi.

“Xi will be chairman of everything,” said Ether Yin, a partner at advisory firm Trivium China in Beijing. “He has effectivel­y put himself at the centre of the whole country.”

While most of Xi’s power flows from his roles as party chief and supreme military commander, being president — or “chairman” in Chinese — gives him legal standing as head of state. The largely ceremonial role of vice president is second in succession and can carry out duties delegated by the chief executive.

Wang’s appointmen­t to the vicepresid­ency allows Xi to retain a trusted surrogate with connection­s to the U.S. diplomatic and financial communitie­s. He helped set up China’s first investment bank with Morgan Stanley in the 1990s and also establishe­d enduring ties with prominent Wall Street figures such as Hank Paulson.

Yanmei Xie, a China policy analyst for Gavekal Dragonomic­s in Beijing, said appointing Wang could extend decision-making beyond the sevenmembe­r Politburo Standing Committee, the party’s top body and a key component of the collective leadership system set up after Mao’s tumultuous rule.

“Basically, it’s him minimising collective leadership without abolishing the institutio­n altogether,” Xie said. “Xi will be relying on a collection of personal advisers to run the country and make decisions.”

Chinese lawmakers were expected to confirm new terms for more top officials — including Premier Li Keqiang and top military and law enforcemen­t officials — in votes Sunday. Several ministerle­vel appointmen­ts were scheduled for Monday, including a replacemen­t for retiring central bank chief Zhou Xiaochuan and the head of a new agency to regulate the country’s $43 trillion finance-and-insurance sector.

Beside appointing Xi, the legislatur­e also passed a plan Saturday to create, eliminate or consolidat­e dozens of state agencies under a sweeping government overhaul aimed at solidifyin­g party control. Lawmakers were also expected to confirm the leader of a powerful new law enforcemen­t and ethics commission to police millions of public servants, party officials, academics, journalist­s and state company managers.

The changes leave Xi with sole

responsibi­lity for China’s $12 trillion economy, mounting debt pile, more aspiration­al middle class and growing overseas interests. He’s attempting to build a developed economy without loosening political control, staking the party’s legitimacy on its ability to make China rich and strong.

Xi’s new power might provide reassuranc­e to investors who believe that bureaucrat­ic resistance has slowed his reform agenda. Still, centralise­d control by one man could become a problem should his health fail or subordinat­es fail to question bad decisions from the top.

“Xi’s dominance has been achieved through top- down measures, such as tightened discipline and the anti-graft drive, as well as skillful politics, rather than the winning of hearts and minds,” said Tom Rafferty, the Economist Intelligen­ce Unit’s regional manager for China “That points to a potential fragility, but we do not expect any challenge to his position to emerge in the coming years.”

Although legislativ­e dissent is rare, no president has received a unanimous vote in at least a quarter-century

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 ?? PHOTO: BLOOMBERG ?? Xi, 64, got his name written into the Constituti­on and party charter, putting him on a status equal to Mao Zedong
PHOTO: BLOOMBERG Xi, 64, got his name written into the Constituti­on and party charter, putting him on a status equal to Mao Zedong

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