Xi’s departure from the two-term limit occurs amid several international and domestic developments. The trade and tech war started by former US president Donald Trump remains a hot-button issue. While many major world economies have consciously opened up and tried to put the pandemic behind, China has thus far maintained its zero-Covid policy that has restricted people flow and business activities, leading to lower GDP forecasts. Curbs were especially felt by China’s technology and property sectors. The former no longer enjoys supernormal earnings, while the latter is forced to confront its ballooning debt load. Under the overarching “Common Prosperity” (a policy to bolster social equality) introduced by Xi earlier this year, growing wealth inequality is to be tempered, if not reversed.
All eyes are on China on Oct 16, as the 20th National Congress of the Chinese Communist Party (CCP) opens. With China’s economy and markets playing a pivotal role in world economy and trade, political, economic and social changes will be closely watched.
The meeting — held once every five years — is attended by representatives from across the economic, political, social and defence sectors. It will also see a new round of leadership appointments, including the apex body and the politburo standing committee. The top appointment is not likely to turn up any surprises. With China altering its state constitution in 2018, President Xi Jinping is all but expected to serve an unprecedented third term.
