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Full text of Xi Jinping’s keynote address at the CPC in Dialogue with World Political Parties High-level Meeting – Xinhua

  1. Full text of Xi Jinping’s keynote address at the CPC in Dialogue with World Political Parties High-level Meeting Xinhua
  2. Xi Touts China’s Modernization Path at Political Parties Summit Bloomberg
  3. Xi calls for Global Civilisation Initiative aimed at preservation of diverse cultures Deccan Herald
  4. Xinhua Headlines: Xi urges political parties to steer course for modernization, proposes Global Civilization Initiative Xinhua
  5. China’s Xi vows ‘peaceful’ Taiwan ties as caution marks tone from Beijing South China Morning Post
  6. View Full Coverage on Google News

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Protests erupt across China in unprecedented challenge to Xi Jinping’s zero-Covid policy


Beijing
CNN
 — 

Protests are erupting across China, including at universities and in Shanghai where hundreds chanted “Step down, Xi Jinping! Step down, Communist Party!” in an unprecedented show of defiance against the country’s stringent and increasingly costly zero-Covid policy.

A deadly fire at an apartment block in the country’s far western region of Xinjiang that killed 10 people and injured nine on Thursday appears to have fueled the anger, as video emerged that seemed to suggest lockdown measures delayed firefighters from reaching the victims.

Protests broke out in cities and at universities across China on Saturday and early Sunday morning, according to social media videos and witness accounts.

Videos widely circulated on Chinese social media show hundreds of people in downtown Shanghai on Saturday lighting candles to mourn the dead from the Xinjiang fire.

The crowd later held up blank sheets of white paper – in what is traditionally a symbolic protest against censorship – and chanted, “Need human rights, need freedom.”

In multiple videos seen by CNN, people could be heard shouting demands for China’s leader Xi Jinping and the Communist Party to “step down.” The crowd also chanted “Don’t want Covid test, want freedom!” and “Don’t want dictatorship, want democracy!”

Some videos show people singing China’s national anthem and The Internationale, a standard of the socialist movement, while holding banners protesting Beijing’s exceptionally stringent pandemic measures.

Protests have also broken out in the capital city Beijing. One student at the prestigious Peking University told CNN that when he arrived at the protest scene at around 1 a.m. Sunday local time, there were around 100 students, and security guards were using jackets to cover a protest slogan painted on the wall.

“Say no to lockdown, yes to freedom. No to Covid test, yes to food,” read the message written in red paint, echoing the slogan of a protest that took place on a Beijing overpass in October, just days before a key Communist Party meeting at which Xi secured a third term in power.

“Open your eyes and look at the world, dynamic zero-Covid is a lie,” the protest slogan at Peking University read.

The student said security guards later covered the slogan with black paint.

Students later gathered to sing the The Internationale before being dispersed by teachers and security guards.

In the eastern province of Jiangsu, dozens of students from Communication University of China, Nanjing gathered to mourn those who died in the Xinjiang fire. Videos show the students holding up sheets of white paper and mobile phone flashlights.

In one video, a university official could be heard warning the students: “You will pay for what you did today.”

“You too, and so will the country,” a student shouted in reply.

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Xi Jinping’s expected coronation begins as 2022 Communist Party National Congress gets underway


Hong Kong
CNN
 — 

Chinese leader Xi Jinping on Sunday vowed to steer China through grave challenges toward national rejuvenation, advancing a nationalistic vision that has put it on a collision path with the West.

Speaking at the opening of the 20th Party Congress, where he is poised to secure a norm-breaking third term in power, Xi struck a confident tone, highlighting China’s growing strength and rising influence under his first decade in power.

But he also repeatedly underscored the risks and challenges the country faces.

Describing the past five years as “highly unusual and extraordinary,” Xi said the ruling Communist Party has led China through “a grim and complex international situation” and “huge risks and challenges that came one after another.”

The very first challenges Xi listed were the Covid-19 pandemic, Hong Kong and Taiwan — all of which he claimed China had come away from victorious.

The Chinese government, Xi said, had “protected people’s lives and health” from Covid, turned Hong Kong from “chaos to governance,” and carried out “major struggles” against “independence forces” in the island of Taiwan, a self-governing democracy Beijing claims as its own territory despite having never controlled it.

Wen-Ti Sung, a political scientist with the Australia National University’s Taiwan Studies Program, said Xi’s decision to flag the Taiwan issue early on in his speech was a departure from previous speeches and conveys a “newfound urgency on making progress on the Taiwan issue.”

Xi won the loudest and longest applause from the nearly 2,300 handpicked delegates inside the Great Hall of the People when he spoke about Taiwan again later in the speech.

He said China would “strive for peaceful reunification” — but then gave a grim warning, saying “we will never promise to renounce the use of force and we reserve the option of taking all measures necessary.”

“The wheels of history are rolling on towards China’s reunification and the rejuvenation of the Chinese nation. Complete reunification of our country must be realized,” Xi said to thundering applause.

Xi also underscored the “rapid changes in the international situation” — a thinly veiled reference to the fraying ties between China and the West, which have been further strained by Beijing’s tacit support for Moscow following Russia’s invasion of Ukraine.

He said China has “taken a clear-cut stance against hegemonism and power politics” and “never wavered” in opposition to unilateralism and “bullying” — in an apparent jab at what Beijing views as a US-led world order that needs to be dismantled.

Laying out broad directions for the next five years, Xi said China would focus on “high quality education” and innovation to “renew growth” in the country’s crisis-hit economy. China will “speed up efforts to achieve greater self-reliance in science and technology,” he said, in comments that come just months after his damaging crackdown on the country’s private sector and major tech companies.

Xi also vowed to speed up efforts to build the People’s Liberation Army (PLA) into a “world-class military,” pledging to improve the PLA’s ability to safeguard national sovereignty and build strategic deterrence. He also urged the PLA to strengthen its training and improve its “ability to win.”

Xi’s speech was peppered with the Chinese term for “security” — which was mentioned about 50 times. He called national security the “foundation of the rejuvenation of the Chinese nation,” and urged enhancing security in military, economy and “all aspects,” both at home and abroad.

Another point of focus was Marxism and ideology. “I don’t think there will be any relaxation of the ideological atmosphere in the coming five years,” said Victor Shih, an expert on elite Chinese politics at the University of California.

Dali Yang, a political scientist at the University of Chicago, said the directions laid out in Xi’s opening speech were a continuation of his previous policies. By emphasizing the challenges and struggles, he said, it justifies “the need for a strong party and its great leader.”

The week-long congress kicked off on Sunday morning amid heightened security, escalated zero-Covid restrictions and a frenzy of propaganda and censorship.

The Communist Party’s most consequential meeting in decades, the congress is set to cement Xi’s status as the China’s most powerful leader since late Chairman Mao Zedong, who ruled until his death aged 82. It will also have a profound impact on the world, as Xi doubles down on an assertive foreign policy to boost China’s international clout and rewrite the US-led global order.

The meetings will be mostly held behind close doors throughout the week. When delegates reemerge at the end of the congress next Saturday, they will conduct a ceremonial vote to rubber stamp Xi’s work report and approve changes made to the party constitution — which might bestow Xi with new titles to further strengthen his power.

The delegates will also select the party’s new Central Committee, which will hold its first meeting the next day to appoint the party’s top leadership — the Politburo and its Standing Committee, following decisions already hashed out behind the scenes by party leaders before the congress.

The congress will be a major moment of political triumph for Xi, but it also comes during a period of potential crisis. Xi’s insistence on an uncompromising zero-Covid policy has fueled mounting public frustration and crippled economic growth. Meanwhile, diplomatically, his “no-limits” friendship with Russian President Vladimir Putin has further strained Beijing’s ties with the West following Moscow’s invasion of Ukraine.

Here’s why Xi’s subtle gestures during speech worries people

In the lead-up to the congress, officials across China drastically ramped up restrictions to prevent even minor Covid outbreaks, imposing sweeping lockdowns and increasingly frequent mass Covid tests over a handful of cases. Yet infections caused by the highly transmissible Omicron variant have continued to flare. On Saturday, China reported nearly 1,200 infections, including 14 in Beijing.

Public anger toward zero-Covid came to the fore Thursday in an exceptionally rare protest against Xi in Beijing. Online photos showed two banners were unfurled on a busy overpass denouncing Xi and his policies, before being taken down by police.

“Say no to Covid test, yes to food. No to lockdown, yes to freedom. No to lies, yes to dignity. No to cultural revolution, yes to reform. No to great leader, yes to vote. Don’t be a slave, be a citizen,” one banner reads.

“Go on strike, remove dictator and national traitor Xi Jinping,” read the other.

The Chinese public have paid little attention to the party’s congresses in the past – they have no say in the country’s leadership reshuffle, or the making of major policies. But this year, many have pinned their hopes on the congress to be a turning point for China to relax its Covid policy.

A series of recent articles in the party’s mouthpiece, however, suggest that could be wishful thinking. The People’s Daily hailed zero-Covid as the “best choice” for the country, insisting it is “sustainable and must be followed.”

On Sunday, Xi defended his highly contentious and economically damaging zero-Covid policy.

“In responding to the sudden outbreak of Covid-19, we prioritized the people and their lives above all else, and tenaciously pursued dynamic zero-Covid policy in launching all-out people’s war against the virus,” he said.

Alfred Wu, an associate professor at the Lee Kuan Yew School of Public Policy at the National University of Singapore, said Xi’s words signaled it is “impossible for China to change the zero-Covid strategy in the near future.”

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Xi Jinping’s expected coronation begins as 2022 Communist Party National Congress gets underway


Hong Kong
CNN
 — 

The expected coronation for China’s supreme leader Xi Jinping has officially begun, as the ruling Communist Party convenes a week-long meeting to extoll his first decade in power – and to usher in a likely new era of strongman rule.

Amid heightened security, escalated zero-Covid restrictions and a frenzy of propaganda and censorship, the party kicks off its most consequential national congress in decades in Beijing on Sunday morning.

At the 20th Party Congress, Xi, who came to power in 2012, is poised to secure a third term as the party’s general secretary, breaking with recent precedent and paving the way for potential lifelong rule.

The expected anointment will cement the 69-year-old’s status as China’s most powerful leader since late Chairman Mao Zedong, who ruled China until his death aged 82. It will also have a profound impact on the world, as Xi doubles down on an assertive foreign policy to boost China’s international clout and rewrite the US-led global order.

At the heart of the Chinese capital, nearly 2,300 handpicked party delegates from around the country have gathered in the Great Hall of the People for the highly choreographed event.

Sitting in neat rows with face masks on, they await Xi to deliver a lengthy work report that will take stock of the party’s achievements over the past five years and lay out in broad strokes its policy priorities for the next five.

Observers will be closely watching for signs of the party’s policy direction when it comes to its uncompromising zero-Covid policy, handling of steep economic challenges, and stated goal of “reunifying” with Taiwan – a self-governing democracy Beijing claims as its own despite never having controlled.

The meetings will be mostly held behind close doors throughout the week. When delegates reemerge at the end of the congress next Saturday, they will conduct a ceremonial vote to rubber stamp Xi’s work report and approve changes made to the party constitution – which might bestow Xi with new titles to further strengthen his power.

The delegates will also select the party’s new Central Committee, which will hold its first meeting the next day to appoint the party’s top leadership – the Politburo and its Standing Committee, following decisions already hashed out behind the scenes by party leaders before the congress.

The congress will be a major moment of political triumph for Xi, but it also comes during a period of potential crisis. Xi’s insistence on an uncompromising zero-Covid policy has fueled mounting public frustration and crippled economic growth. Meanwhile, diplomatically, his “no-limits” friendship with Russian President Vladimir Putin has further strained Beijing’s ties with the West following Moscow’s invasion of Ukraine.

In the lead-up to the congress, officials across China drastically ramped up restrictions to prevent even minor Covid outbreaks, imposing sweeping lockdowns and increasingly frequent mass Covid tests over a handful of cases. Yet infections caused by the highly transmissible Omicron variant have continued to flare. On Saturday, China reported nearly 1,200 infections, including 14 in Beijing.

Public anger toward zero-Covid came to the fore Thursday in an exceptionally rare protest against Xi in Beijing. Online photos showed two banners were unfurled on a busy overpass denouncing Xi and his policies, before being taken down by police.

“Say no to Covid test, yes to food. No to lockdown, yes to freedom. No to lies, yes to dignity. No to cultural revolution, yes to reform. No to great leader, yes to vote. Don’t be a slave, be a citizen,” one banner reads.

“Go on strike, remove dictator and national traitor Xi Jinping,” read the other.

The Chinese public have paid little attention to the party’s congresses in the past – they have no say in the country’s leadership reshuffle, or the making of major policies. But this year, many have pinned their hopes on the congress to be a turning point for China to relax its Covid policy.

A series of recent articles in the party’s mouthpiece, however, suggest that could be wishful thinking. The People’s Daily hailed zero-Covid as the “best choice” for the country, insisting it is “sustainable and must be followed.”

On Saturday, on the eve of the congress, party spokesman Sun Yeli told a news conference China’s Covid measures have ensured the country’s extremely low rate of infections and deaths, and enabled “sustained and stable operations of the economy and society.”

“With everything considered, China’s epidemic prevention measures are the most economical and effective,” Sun said.

“Our prevention and control strategies and measures will become more scientific, more accurate, and more effective,” he said. “We firmly believe that the dawn is ahead, and persistence is victory.”

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Xi Jinping’s tech policy in focus

Chinese President Xi Jinping proposing a toast at the welcome banquet for leaders attending the Belt and Road Forum at the Great Hall of the People on April 26, 2019 in Beijing, China.

Nicolas Asfouri | Getty Images

Xi Jinping once declared China should “prioritize innovation” and be on the “cutting-edge (of) frontier technologies, modern engineering technologies, and disruptive technologies.”

Since that speech in 2017, Beijing has spoken about technologies it wants to boost its prowess in, ranging from artificial intelligence to 5G technology and semiconductors.

Five years since Xi’s address at the Communist Party of China’s last National Congress, the global reality for the world’s second-largest economy has transformed. It comes amid an ongoing trade war with the U.S., challenges from Covid and a change in political direction at home that have hurt some of Beijing’s goals.

On Sunday, the 20th National Congress — held once every five years — will begin in Beijing. The high-level meeting is expected to pave the way for Xi to carry on as head of the Communist Party for an unprecedented third five-year term.

Xi will take stock of China’s achievements in science and technology, which have yielded mixed results.

“I agree it is a mixed bag,” Charles Mok, visiting scholar at the Global Digital Policy Incubator at Stanford University.

He said China sets “lofty” goals as it targets to be the best, but “they are limited politically and ideologically in terms of the strategies to reach them.”

Private tech enterprises are faltering under stricter regulation and a slowing economy. China is far from self-sufficient in semiconductors, a task made harder by recent U.S. export controls. Censorship on the mainland has tightened as well.

But China has made some notable advancements in areas such as 5G and space travel.

U.S.-China tech war

“It would seem that Xi underestimated the challenges China faced in overcoming its reliance on foreign, mostly U.S. firms…”

Paul Triolo

technology policy lead, Albright Stonebridge

Zero Covid

Semiconductor self-sufficiency

Beijing put a lot of focus on self-sufficiency in various areas of technology, but especially on semiconductors. The drive to boost China’s domestic chip industry was given further impetus as the trade war began.

In its its five-year development plan, the 14th of its kind, Beijing said it would make “science and technology self-reliance and self-improvement a strategic pillar for national development.”

One area it hoped to do so was in semiconductors.

But a number of restrictions by the U.S. has put a dent in those ambitions.

“It would seem that Xi underestimated the challenges China faced in overcoming its reliance on foreign, mostly U.S. firms, in key ‘core’ or ‘hard’ technologies such as semiconductors,” Paul Triolo, the technology policy lead at consulting firm Albright Stonebridge, told CNBC.

“He also did not account for growing U.S. concern over semiconductors as foundational to key technologies.”

Looking ahead, the latest package of U.S. controls will make a huge dent in China’s technology ambitions.

Paul Triolo

technology policy lead, Albright Stonebridge

Things did not look as “bleak” for China’s semiconductors in 2017 as they do now, Triolo said.

“Looking back, Xi should have redoubled efforts to bolster China’s domestic semiconductor manufacturing equipment sector, but even there, a heavy reliance on inputs such as semiconductors has made it difficult for Chinese firms to reproduce all elements of those complex supply chains.”

The Biden administration unveiled a slew of restrictions last week that aim to cut China off from key chips and manufacturing tools to make those semiconductors. Washington is looking to choke off supply of chips for critical technology areas like artificial intelligence and supercomputing.

Analysts previously told CNBC that this will likely hobble China’s domestic technology industry.

That’s because part of the rules also require certain foreign-made chips that use American tools and software in the design and manufacturing process, to obtain a license before being exported to China.

Chinese domestic chipmakers and design companies still rely heavily on American tools.

Chipmakers — like Taiwanese firm TSMC, the most advanced semiconductor manufacturer in the world —are also dependent on U.S. technology. That means any Chinese company relying on TSMC may be cut off from supply of chips.

Meanwhile, China does not have any domestic equivalent of TSMC. China’s leading chip manufacturer, SMIC, is still generations behind TSMC in its technology. And with the latest U.S. restrictions, it could make it difficult for SMIC to catch up.

So China is still a long way from self-sufficiency in semiconductors, even though Beijing is focusing heavily on it.

“Looking ahead, the latest package of U.S. controls will make a huge dent in China’s technology ambitions, because the curbs on advances semiconductors,” Triolo said. The curbs will “ripple across multiple associated sectors, and make it impossible for Chinese firms to compete in some areas, such as high performance computers, and AI related applications such as autonomous vehicles, that rely on hardware advances to make progress.”

China’s tech crackdown

A major hallmark of Xi’s last five years is how he has transformed China into one of the strictest regulatory regimes globally for technology.

Over the last two years, China’s once free-wheeling and fast-growing tech giants have come under heavy scrutiny.

It began in November 2020 when the $34.5 billion initial public offering of Ant Group, which would have been the biggest in the world, was pulled by regulators.

That sparked several months where regulators moved swiftly to introduce a slew of regulation in areas from antitrust to data protection.

In one of the first regulations of its kind globally, Beijing also passed a law which regulated how tech firms can use recommendation algorithms, underscoring the intense tightening that took place.

Looking back to Xi’s 2017 speech, there were hints that regulation was coming.

“We will provide more and better online content and put in place a system for integrated internet management to ensure a clean cyberspace,” Xi said at that time.

But the pace at which regulations were passed and the scope of the rules took investors off guard, and billions were wiped off the share prices of China’s biggest tech companies — including Alibaba and Tencent — in 2021 and 2022. They have yet to recover from those losses.

Analysts pointed out that even though there were mentions about cleaning up the internet, the swift nature of regulation that subsequently swept across China was unlikely to have been anticipated — even by Xi himself.

“While I believe that in 2017, Xi had absolutely become focused on strengthening platform regulation, I very much doubt that the rapid-fire nature of… [the regulation] was pre-planned,” Kendra Schaefer, partner at Trivium China consultancy, told CNBC.

Five years ago, Xi said the government would “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.”

This is another pledge that appears not to have been met. China’s technology giants are also posting their slowest growth in history, partly due to tighter regulations. Part of the story, analysts say, is about Xi exerting more control over powerful technology businesses that were perceived as a threat to the ruling Communist Party of China.

“It is obvious that they are not supporting the growth of private businesses,” Mok said. “In my view, they have not succeeded.”

“Think of it that they are putting the Party agenda and total control as the top priority … No one can be successful unless the Party is successful in sustaining its dominance and total control.” 

China’s successes from 5G to space

Despite the challenges, China has found success in the realm of science and technology since 2017. Space exploration has been a key focus.

In 2020, a Chinese moon mission concluded with its spacecraft returning back to Earth with lunar samples, a first for the country. That same year, China completed its own satellite navigation system called Beidou, a rival to the U.S.-government owned Global Positioning System (GPS).

Last year, China landed an un-crewed spacecraft on Mars and is planning its first crewed mission to the Red Planet in 2033.

China was also one of the leading nations globally to roll out next-generation 5G mobile networks, which promise super-fast speeds and the ability to support new industries like autonomous driving.

In electric vehicles, China has also pushed ahead. The country is the largest electric car market in the world and home to CATL, the world’s largest EV battery maker, which is looking to expanding overseas.

What next for Xi’s tech policy?

The regulatory assault on the domestic technology sector, which has slowed in recent months, will not go away entirely.

Even if regulatory actions are “moving into a new phase” in Xi’s third term, companies like Alibaba and Tencent won’t necessarily see the breakneck growth speeds they’ve seen in the past, Mok said.

“Even if they find their feet, it is not the same ground. They won’t see that growth, because if China’s overall GDP and economy growth is like what people are talking about now for the next several years … then why should they even outperform the whole China market?” Mok said.

Without a doubt, technology will continue to be a key focus for Xi over the coming five years, with a focus on self-sufficiency. China will likely continue to strive for success in areas Beijing deems as “frontier” technologies such as artificial intelligence and chips.

But Xi’s job in tech is now that much harder.

“As the U.S. continues to ratchet up controls in other areas of technology, and squeeze technology investments in China via outbound investment reviews, the overall innovation engine in China, heretofore driven by the private sector, will also begin to sputter, and the government will have to increasingly step in with funding,” Triolo said.

“This is not necessarily a recipe for success, except for manufacturing heavy sectors, but not for advanced semiconductors, software, and AI.”

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China Communist Party and Xi Jinping’s Plenum: Live Updates

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Credit…Carlos Garcia Rawlins/Reuters

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China’s Communist Party is poised to deliver Xi Jinping a momentous breakthrough this week that will help secure his political future — by rewriting history.

Senior party officials have gathered at a closed-door meeting in Beijing to cement Mr. Xi’s dominance as he moves to claim a likely third term next year as China’s leader.

The meeting, known as the plenum, is expected to approve a decision on Thursday that will reassess the party’s 100-year history and enshrine Mr. Xi in the party’s official firmament of era-defining leaders. The move would elevate Mr. Xi to a stature alongside Mao Zedong, the founder of the country’s Communist rule, and Deng Xiaoping, the chief architect of its economic takeoff.

This week’s meeting was the start of a momentous year in Chinese politics. Its announcements will play a big part in the leadership shake-up at a Communist Party congress that is likely to be held in 2022, when Mr. Xi, China’s most powerful leader in decades, appears on track to secure a third five-year term as the party’s general secretary. There is no rival leader or heir apparent in view.

The decision to place Mr. Xi among the country’s historical giants would bolster his argument that he is the only leader capable of steering China toward superpower status through uncertain times. China navigated the Covid-19 pandemic relatively well, but it faces economic risks from debt-laden companies and local governments, social pressures as its population gets older, and growing distrust from the United States and other Western countries.

On Thursday, Mr. Xi urged Asian nations to resist forming “small circles on geopolitical grounds,” a clear reference to efforts by President Biden to shore up alliances of democratically minded countries to counter China.

“The Asia-Pacific region cannot and should not relapse into the antagonism and division of the Cold War era,” he said in a recorded video to the Asia-Pacific Economic Cooperation forum.

Mr. Xi has faced a succession of crises, but he has often been able to turn them into vindication for his hard-line ways. He responded to months of pro-democracy unrest in Hong Kong by imposing a harsh security law. He applied sweeping restrictions to limit the spread of Covid-19 in China. And Beijing claimed victory after Canadian authorities released Meng Wanzhou, a Chinese telecommunications executive, at the same time that China quietly released two Canadians it had arrested.

By claiming a third term as party leader, as he is expected to do next year, Mr. Xi would break the pattern of staying in power for only two terms. In 2018, Mr. Xi made a bold power play by eliminating a term limit on the presidency, opening the way for him to lead China indefinitely. That move overturned widespread expectations that the party had been settling into a 10-year cap on leaders’ time in power.

Glorifying Mr. Xi’s achievements, and making him a peer of Mao and Deng, would help fireproof Mr. Xi against any challenges to his record. The decision is sure to become the focus of an intense propaganda campaign, as well as indoctrination sessions for party officials.

Reporting and research by Chris Buckley, Steven Lee Myers, Liu Yi and Claire Fu.

Credit…Liu Bin/Xinhua, via Associated Press

The meeting of the Communist Party’s Central Committee is a big deal in Chinese politics. The Central Committee brings together the party’s elite — about 200 central and provincial officials who have voting rights on its decisions, and 170 or so “alternate” members with no vote. The committee usually meets once a year to set the direction for politics and policy.

Past plenums have inaugurated major changes. A Central Committee meeting in 1978 set China on a path toward market reforms. One in 2013 approved a blueprint for Xi Jinping’s economic and social reforms. And another, in 2019, set in motion preparations for Hong Kong’s drastic national security law. Unusually, this latest meeting is expected to pass a resolution on Communist Party history.

The four-day meeting, or “plenum,” of the Central Committee lays the ground for a once-every-five-years party congress later in 2022 that will approve a new leadership lineup for China. Xi Jinping seems very likely to claim a third five-year term at that congress, bucking the two-term limit observed by his predecessor.

Even with his formidable power, Mr. Xi needs to carefully handle the party elite, heading off potential discontent and enforcing loyalty, and the meeting was a chance to do that. These plenums, though, take place behind closed doors, and we are unlikely to find out details about what Mr. Xi and other officials said about any plans for the coming leadership shake-up.

A decision on history sounds like an unusual move: Imagine if President Biden summoned lawmakers and governors to agree on an assessment of American history. But managing how the past is remembered has long been important to Chinese leaders’ claims to authority. And the new resolution on history that the meeting will issue has far-reaching implications by emphasizing that Mr. Xi’s plans, and his potential influence, extend for decades ahead.

Credit…Martin Pollard/Reuters

Xi Jinping’s decision to devote a leadership conclave to rewriting the history of the Communist Party showed just how much controlling the past matters in Chinese politics.

For Mr. Xi, the move to put his personal stamp on the party’s history is a way of entrenching his authority — and shaping China’s political future.

In pushing through an authoritative “resolution” on the party’s past, Mr. Xi joined a select company of party leaders. Mao Zedong and Deng Xiaoping were the only others to oversee such resolutions, both to mark major political turning points.

Mao and his supporters introduced the party’s first resolution on history, in 1945, to consolidate his authority and condemn former rivals after years of internal conflict. That resolution was an important steppingstone in establishing “Mao Zedong Thought” — the party’s guiding set of beliefs that it carried to power across China in 1949.

Deng and other veteran leaders oversaw the party’s second resolution, in 1981, after they had returned to power following Mao’s Cultural Revolution, a decade of violent upheaval.

They faced a wave of bitter disillusionment with Mao, including among officials. But Deng worried that going too far in denouncing Mao would knock away a pillar of party authority. Mao was, after all, the founder of the People’s Republic. Deng and his aides crafted the resolution to renounce Mao’s destructive extremes in his final decades while defending his overall contribution.

Mr. Xi has shown no interest in delving deeply into the party’s past missteps. Instead, the latest resolution is likely to focus on consolidating Mr. Xi’s stature as supreme leader. Before the plenum, a surge of propaganda and a new official history of the party acclaimed Mr. Xi as a transformational leader who had led China into a new epoch.

Credit…Aly Song/Reuters

The Chinese Communist Party’s drive to revive public faith in its history and values goes well beyond textbooks to include film, television, museum exhibitions — and even ice cream wrappers.

As part of Xi Jinping’s intensified efforts to control how Chinese people remember their past, the authorities have become much more energetic and a bit more skilled at packaging the party’s message for a wider audience.

“The Battle at Lake Changjin,” a two-hour, 56-minute film about an epic battle between Chinese and U.S. forces during the Korean War, became China’s second highest grossing film ever, helped by promotion from party authorities. This year’s celebrations marking the 100 years since the founding of the Chinese Communist Party also brought many celebratory television dramas and documentaries.

“In recent years you can see progress in propaganda using methods that are more acceptable to youth,” Kecheng Fang, an assistant professor in the School of Journalism and Communication at the Chinese University of Hong Kong, said in an interview.

At the same time, he added, censorship has tightened. “Skeptical voices have been steadily wiped out.”

The party’s commemoration of its past often dwells on heroic accounts from the revolution and China’s war against the Japanese invasions and occupation in the 1930s and 1940s.

The party has encouraged so called “red tourism” — monuments and museums where visitors are immersed in heroic stories from the party’s history. The famous ones include Mao Zedong’s hometown, and the mountainous Jinggangshan area where the Communist Party honed its rural revolution. The number of visits to “red” tourist sites has increased from 140 million in 2004 to 1.4 billion in 2019, officials say.

The party has recruited virtually every aspect of culture to promote its history. “Era of Awakening”-brand ice cream features lines from a patriotic television drama on its wrappers.

“I am a brick of the revolution, and I’ll be put wherever I’m needed,” reads one of them, for a chocolate-flavored ice cream.

Reporting and research by Chris Buckley and Liu Yi.

Credit…Gilles Sabrié for The New York Times

History in China is not just about political legitimacy. It is an instrument of political control.

Recent changes to the country’s criminal code made slander of the country’s heroes and martyrs, as defined by the Communist Party, punishable by up to three years in prison.

Since March, the code has been used repeatedly to stifle questions about historical events that were once open to debate and research. Those include the revolution that gave birth to the People’s Republic of China and, more recently, a clash with Indian troops in 2020 along the disputed border in the Himalayas, where at least four Chinese soldiers died.

It has been used to jail prominent bloggers and journalists but also ordinary citizens. The intent is clearly to send a very public warning against deviating from party orthodoxy. A Chinese government directive issued this week ordered officials to ensure that memorial parks and other sites commemorating party martyrs are well maintained.

The weaponization of history comes out of an authoritarian playbook that other countries have also used to police dissent. Only weeks after the law in China was toughened, Russia made it a crime to slander veterans of World War II, a historical event that President Vladimir V. Putin has placed at the core of his political legitimacy.

“While it is absolutely not a uniquely authoritarian impulse to draw from a highly selective version of history and wage history wars to advance your own interests, in Russia and China it is becoming much harder and more dangerous to push back,” said Katie Stallard, a fellow at the Woodrow Wilson International Center for Scholars in Washington. She is the author of a forthcoming book, “Dancing on Bones: History and Power in China, Russia and North Korea.”

“The space for challenging the official version — which did exist previously — is shrinking,” she said. “Both frame their approach in terms of patriotism, but really it’s about securing the status quo and entrenching existing systems of power.”

As leader of China, Xi Jinping has pushed a nationalistic vision of a resurgent country brimming with new confidence. But Mr. Xi also faces complex challenges. The country’s sizzling economic growth rate has slowed. The coronavirus pandemic, first detected in China, has led to strict lockdowns as the country pursues a “zero Covid” policy of not tolerating new infections. The country’s leadership has faced condemnation from Western countries for its harsh treatment of largely Muslim minority groups in Xinjiang. A dispute over trade with the United States has escalated into broader tensions over technological rivalry and military moves. And massive protests in Hong Kong tested China’s leadership and led to a crackdown by Beijing.

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President Xi Jinping’s pledge to redistribute wealth brings back bad memories for luxury brands in China

Many analysts believe the campaign could actually be good for business. While Xi’s plans are still taking shape, his government has made clear that it ultimately wants to raise the incomes of more households and expand the middle class. That, in turn, could help increase purchasing power and consumption.

But experts haven’t ruled out the possibility of the government clamping down on signs of perceived extravagance or raising taxes on the rich, which could darken the outlook for makers of high-end handbags, shoes and jewelry.

“Initially when it was announced, people panicked,” Zuzanna Pusz, a UBS analyst, said of the “common prosperity” pledge. “And the market panicked. Because everyone kind of went back with their memory to the anti-graft campaign, and how the luxury demand back then was impacted.”

Some players have already taken a hit. Shares of LVMH slid 7.9% from August to September, while Kering, the owner of Gucci, fell 19.4% over the same period.

“In the past three months, the [luxury] sector has underperformed the European market … on the back of renewed China concerns,” including the wealth redistribution campaign, a flare-up in coronavirus cases and regulation, Citi analysts wrote in an October report.

The call for ‘common prosperity’

Beijing has been tightening the screws on private enterprise over the past year.

But the ante was upped in August, when Xi told top leaders from the ruling Chinese Communist Party that the government should establish a system to redistribute wealth in the interest of “social fairness.”

According to state news agency Xinhua, Xi said that it was “necessary” to “reasonably regulate excessively high incomes, and encourage high-income people and enterprises to return more to society.” State media has suggested that the government could consider taxation or other ways of redistributing income and wealth.

Some companies have taken the hint from Beijing. In recent months, several of China’s biggest tech firms have pledged to donate billions of dollars to the cause, including Alibaba (BABA) and Tencent (TCEHY). One company, Pinduoduo (PDD), even promised to hand over its entire profit for the second quarter.

There have been signs of apprehension within the luxury world. Recently, the sector has lost favor with some investors, which “suggests that short-term China-related uncertainty has been priced in,” UBS analysts wrote in a September report.

“The impact of China’s common prosperity initiatives on luxury consumption … remains investors’ key concern,” they added.

But analysts at the Swiss bank also note that “common prosperity” is not a new concept in China.

Use of the phrase stretches back to the time of Chairman Mao Zedong, who invoked “common prosperity” when advocating for dramatic economic reforms to take power away from rich landlords and farmers, the rural elite.

In 2012, “common prosperity” was “deemed the ‘fundamental principle’ of Chinese socialism” at a major Communist Party gathering, noted Tao Wang, a UBS economist, in a report to clients.

Analysts at the bank also say they expect just “modest and gradual” adjustments in personal income tax and consumption tax in the next few years, suggesting that “the negative impact may be limited and not imminent.”

Some top executives have addressed the issue directly.

Earlier this month, LVMH Chief Financial Officer Jean Jacques Guiony said that he was “not particularly worried or concerned with the recent announcement.”

“We don’t see any reason to believe that this could be detrimental to the upper middle class, affluent class that is the bulk of our customer base,” he told analysts. “Therefore, this seems to us not to be negative — if not positive.”

Last week, Nicolas Hieronimus, CEO of L’Oreal, which owns brands such as Giorgio Armani Beauty and Lancôme, also weighed in.

“We remain very confident for China,” he said on a corporate sales call, adding that the “common prosperity” pledge would likely help make the country’s middle class “wealthier and bigger, [which] is very positive for us.”

A sensitive subject

Industry observers, though, have good reason to worry.

Less than a decade ago, the luxury industry was hit hard by a massive anti-corruption drive in China. The government stamped out any sign of lavish spending among officials, including on luxury goods.
The campaign, rolled out by Xi in 2012, had a dramatic impact on the sector. In 2013, mainland China’s luxury market grew just 2%, compared to 7% the previous year, according to Bain.
Some fashion brands were eschewed as shoppers looked for less conspicuous logos or designs. People “don’t want to just walk around with big LVs anymore,” Patricia Pao, CEO of the Pao Principle, a consultant for luxury brands in China, told CNN at the time.
Premium liquor brands, such as baijiu maker Kweichow Moutai, also saw sales drop off significantly. The company later said that the campaign led to “unprecedented pressure” on the alcohol industry.

The sector is still facing regulatory concerns, and was recently hit by a sell-off in shares.

During the 2012 anti-corruption crusade, swanky hotels suffered, too, as officials called off banquets and conferences. Some five-star hotels at the time even asked to drop down a star, in hopes that the lower ratings would allow them to appear less opulent and retain business, Chinese state media reported.
It doesn’t help that businesses ranging from the booming tech sector to private education in China have lately been targeted with another crackdown, which has spilled over into the entertainment and live-stream shopping industries.

Pusz, the UBS analyst, said that may have contributed to some unease.

“Because obviously there has been quite a bit of news flow in the market about several other industries being impacted by various measures of the Chinese government, I think there was a bit of anticipation from people, [like]: ‘Okay, what if luxury comes next?'” she said.

Times have changed

Some analysts, though, think this crackdown could be different.

According to the latest estimates from Bain, shoppers in China account for 35% of all luxury sales worldwide. By 2025, the firm suggests that could shoot up to nearly 50%.

Bruno Lannes, a partner with Bain’s consumer products and retail practices who is based in Shanghai, said his firm isn’t changing its forecasts because of the “common prosperity” pledge.

“It’s too early to say, but there is no real indication that this has a major impact, I think, on the brands,” he told CNN Business.

Lannes expects the latest policy could have a “neutral” or “positive” effect on luxury consumption, particularly if incomes grow across the country as a result.

“I think it’s very different from what happened [with] the anti-corruption campaign back then,” he added.

Previously, many luxury brands in China were driven by the tradition of executives or officials giving or receiving gifts, which was a huge target of the campaign, Lannes noted. Now, consumption is largely “by people who consume for themselves or for their relatives,” he said.

Some consumers may already be starting to hold back on spending, however.

According to LookLook, a consumer research firm that works with luxury brands, 1 in 10 respondents to a recent survey of 100 luxury buyers in China cited the government crackdown on excessive shows of wealth as a reason they were not spending as much these days.

One participant of the study, which was released in September, cited a desire to not “attract unwanted attention,” according to LookLook CEO Malinda Sanna.

“We’ve never heard that before,” she said. “I think the demand is definitely still there, but they’re being cautious.”

— Laura He contributed to this report.

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Xi Jinping’s assault on tech will change China’s trajectory

OF ALL CHINA’S achievements in the past two decades, one of the most impressive is the rise of its technology industry. Alibaba hosts twice as much e-commerce activity as Amazon does. Tencent runs the world’s most popular super-app, with 1.2bn users. China’s tech revolution has also helped transform its long-run economic prospects at home, by allowing it to leap beyond manufacturing into new fields such as digital health care and artificial intelligence (AI). As well as propelling China’s prosperity, a dazzling tech industry could also be the foundation for a challenge to American supremacy.

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That is why President Xi Jinping’s assault on his country’s $4trn tech industry is so startling. There have been over 50 regulatory actions against scores of firms for a dizzying array of alleged offences, from antitrust abuses to data violations. The threat of government bans and fines has weighed on share prices, costing investors around $1trn.

Mr Xi’s immediate goal may be to humble tycoons and give regulators more sway over unruly digital markets. But as we explain, the Communist Party’s deeper ambition is to redesign the industry according to its blueprint. China’s autocrats hope this will sharpen their country’s technological edge while boosting competition and benefiting consumers.

Geopolitics may be spurring them on, too. Restrictions on access to components made with American technology have persuaded China that it needs to be more self-reliant in critical areas like semiconductors. Such “hard tech” may benefit if the crackdown on social media, gaming firms and the like steers talented engineers and programmers its way. However the assault is also a giant gamble that may end up doing long-term damage to enterprise and economic growth.

Twenty years ago China hardly seemed on the threshold of a technological miracle. Silicon Valley dismissed pioneers such as Alibaba as copycats, until they leapt ahead of it in e-commerce and digital payments. Today 73 Chinese digital firms are worth over $10bn. Most have Western investors and foreign-educated executives. A dynamic venture-capital ecosystem keeps churning out new stars. Of China’s 160 “unicorns” (startups worth over $1bn), half are in fields such as AI, big data and robotics.

In contrast to Vladimir Putin’s war on Russia’s oligarchs in the 2000s, China’s crackdown is not about insiders fighting over the spoils. Indeed, it echoes concerns that motivate regulators and politicians in the West: that digital markets tend towards monopolies and that tech firms hoard data, abuse suppliers, exploit workers and undermine public morality.

Stronger policing was overdue. When China opened up, the party kept a stifling grip on finance, telecoms and energy but allowed tech to let rip. Its digital pioneers used this near absence of regulation to grow astonishingly fast. Didi, which provides transport, has more users than America has people.

However, the big digital platforms also exploited their freedom to trample smaller firms. They stop merchants from selling on more than one platform. They deny food-delivery drivers and other gig workers basic benefits. The party wants to put an end to such misconduct. It is an ambition that many investors support.

The question is how? China is about to become a policy laboratory in which an unaccountable state wrestles with the world’s biggest firms for control of the 21st century’s essential infrastructure. Some data, which the government says is a “factor of production”, like land or labour, may pass into public ownership. The state may enforce interoperability between platforms (so that, say, WeChat cannot continue to block rivals). Addictive algorithms may be more rigorously policed. All this would hurt profits, but might make markets work better.

But make no mistake, the crackdown on China’s unruly tech is also a demonstration of the party’s untrammelled power. In the past its priorities often fell victim to vested interests, including corrupt insiders, and it was constrained by its need to court foreign capital and create employment. Now the party feels emboldened, issuing new rules at a furious pace and enforcing them with fresh zeal. China’s regulatory immaturity is on full display. Just 50 or so people staff its main anti-monopoly agency but they can destroy business models at the stroke of a pen. Denied due process, companies must grin and bear it.

China’s leaders have spent decades successfully defying Western lectures on liberal economics. They may see their clampdown on the technology industry as a refinement of their policy of state capitalism—a blueprint for combining prosperity and control in order to keep China stable and the party in power. Indeed, as China’s population starts to decline, the party wants to raise productivity through state direction, including by automating factories and forming urban mega-clusters.

Yet the attempt to reshape Chinese tech could easily go wrong. It is likely to raise suspicion abroad, hampering the country’s ambitions to sell services and set global tech standards worldwide in the 21st century, as America did in the 20th. Any drag on growth would be felt far beyond China’s borders.

A bigger risk is that the crackdown will dull the entrepreneurial spirit within China. As the economy shifts from making things towards services, spontaneous risk-taking, backed by sophisticated capital markets, will become more important. Several of China’s leading tech tycoons have pulled back from their companies and public life. Wannabes will think twice before trying to emulate them, not least because the crackdown has jacked up the cost of capital.

Startup slowdown

China’s biggest tech firms now trade at an average discount of 26% per dollar of sales relative to American firms. Startups, such as the minnows taking ride-hailing business from Didi with mapping apps, have been nibbling at the government’s main targets. Far from being emboldened by the crackdown, they are likely to feel exposed. Economic development is largely about creative destruction. China’s autocratic leaders have shown that they can manage the destruction. Whether this tech tumult will also foster creativity remains much in doubt.

This article appeared in the Leaders section of the print edition under the headline “China’s attack on tech”

Read original article here

Xi Jinping’s assault on tech will change China’s trajectory

OF ALL CHINA’S achievements in the past two decades, one of the most impressive is the rise of its technology industry. Alibaba hosts twice as much e-commerce activity as Amazon does. Tencent runs the world’s most popular super-app, with 1.2bn users. China’s tech revolution has also helped transform its long-run economic prospects at home, by allowing it to leap beyond manufacturing into new fields such as digital health care and artificial intelligence (AI). As well as propelling China’s prosperity, a dazzling tech industry could also be the foundation for a challenge to American supremacy.

That is why President Xi Jinping’s assault on his country’s $4trn tech industry is so startling. There have been over 50 regulatory actions against scores of firms for a dizzying array of alleged offences, from antitrust abuses to data violations. The threat of government bans and fines has weighed on share prices, costing investors around $1trn.

Mr Xi’s immediate goal may be to humble tycoons and give regulators more sway over unruly digital markets. But as we explain, the Communist Party’s deeper ambition is to redesign the industry according to its blueprint. China’s autocrats hope this will sharpen their country’s technological edge while boosting competition and benefiting consumers.

Geopolitics may be spurring them on, too. Restrictions on access to components made with American technology have persuaded China that it needs to be more self-reliant in critical areas like semiconductors. Such “hard tech” may benefit if the crackdown on social media, gaming firms and the like steers talented engineers and programmers its way. However the assault is also a giant gamble that may end up doing long-term damage to enterprise and economic growth.

Twenty years ago China hardly seemed on the threshold of a technological miracle. Silicon Valley dismissed pioneers such as Alibaba as copycats, until they leapt ahead of it in e-commerce and digital payments. Today 73 Chinese digital firms are worth over $10bn. Most have Western investors and foreign-educated executives. A dynamic venture-capital ecosystem keeps churning out new stars. Of China’s 160 “unicorns” (startups worth over $1bn), half are in fields such as AI, big data and robotics.

In contrast to Vladimir Putin’s war on Russia’s oligarchs in the 2000s, China’s crackdown is not about insiders fighting over the spoils. Indeed, it echoes concerns that motivate regulators and politicians in the West: that digital markets tend towards monopolies and that tech firms hoard data, abuse suppliers, exploit workers and undermine public morality.

Stronger policing was overdue. When China opened up, the party kept a stifling grip on finance, telecoms and energy but allowed tech to let rip. Its digital pioneers used this near absence of regulation to grow astonishingly fast. Didi, which provides transport, has more users than America has people.

However, the big digital platforms also exploited their freedom to trample smaller firms. They stop merchants from selling on more than one platform. They deny food-delivery drivers and other gig workers basic benefits. The party wants to put an end to such misconduct. It is an ambition that many investors support.

The question is how? China is about to become a policy laboratory in which an unaccountable state wrestles with the world’s biggest firms for control of the 21st century’s essential infrastructure. Some data, which the government says is a “factor of production”, like land or labour, may pass into public ownership. The state may enforce interoperability between platforms (so that, say, WeChat cannot continue to block rivals). Addictive algorithms may be more rigorously policed. All this would hurt profits, but might make markets work better.

But make no mistake, the crackdown on China’s unruly tech is also a demonstration of the party’s untrammelled power. In the past its priorities often fell victim to vested interests, including corrupt insiders, and it was constrained by its need to court foreign capital and create employment. Now the party feels emboldened, issuing new rules at a furious pace and enforcing them with fresh zeal. China’s regulatory immaturity is on full display. Just 50 or so people staff its main anti-monopoly agency but they can destroy business models at the stroke of a pen. Denied due process, companies must grin and bear it.

China’s leaders have spent decades successfully defying Western lectures on liberal economics. They may see their clampdown on the technology industry as a refinement of their policy of state capitalism—a blueprint for combining prosperity and control in order to keep China stable and the party in power. Indeed, as China’s population starts to decline, the party wants to raise productivity through state direction, including by automating factories and forming urban mega-clusters.

Yet the attempt to reshape Chinese tech could easily go wrong. It is likely to raise suspicion abroad, hampering the country’s ambitions to sell services and set global tech standards worldwide in the 21st century, as America did in the 20th. Any drag on growth would be felt far beyond China’s borders.

A bigger risk is that the crackdown will dull the entrepreneurial spirit within China. As the economy shifts from making things towards services, spontaneous risk-taking, backed by sophisticated capital markets, will become more important. Several of China’s leading tech tycoons have pulled back from their companies and public life. Wannabes will think twice before trying to emulate them, not least because the crackdown has jacked up the cost of capital.

Startup slowdown

China’s biggest tech firms now trade at an average discount of 26% per dollar of sales relative to American firms. Startups, such as the minnows taking ride-hailing business from Didi with mapping apps, have been nibbling at the government’s main targets. Far from being emboldened by the crackdown, they are likely to feel exposed. Economic development is largely about creative destruction. China’s autocratic leaders have shown that they can manage the destruction. Whether this tech tumult will also foster creativity remains much in doubt.

This article appeared in the Leaders section of the print edition under the headline “China’s attack on tech”

Read original article here