TAIPEI (TVBS News) — The 20th Communist Party Congress produced intense media coverage last week as we tried to understand the leadership transition in the world’s second-largest economy. The process will have lasting impacts on China’s economic and foreign policies moving forward, according to TVBS commentator Wenchi Yu.
“There was never such curiosity or attention paid to the CCPs leadership change over in part due to the opaque nature of the party’s leadership selection process,” Wenchi Yu said. Xi Jinping’s third term as the Party Secretary General and his complete power consolidation sets the direction of the next five to 10 years of the world’s second-largest economy.
The newly adopted language in the Communist Party’s charter, resolutely opposed to Taiwan’s independence, along with the new leadership’s likely continuation of its “wolf warrior diplomacy,” she continued. Foreign Minister Wang Yi’s promotion to the Politburo of the Central Committee, as well as Xi Jinping’s concluding remarks that call for China’s further opening doors to the world further hint at the future direction of the country, she added.
According to the TVBS commentator, these highlight “China’s determination to be more assertive on the world stage and its desire to shape a global paradigm that may run against the U.S.-led system.”
On the economic side, China released third-quarter economic data on Monday after a six-day delay. The statistics showed that the country’s growth has quickened from 3.5% in the second quarter to 3.9% between June and September.
“The delayed release, likely due to the party’s leadership transition last week, shows a slow and cautious recovery,” she explained. On Monday, Hong Kong and U.S. markets reacted poorly to Xi Jinping’s third term, with listed Chinese stocks dropping sharply.
“Whether Xi’s dual circulation economic policy, meaning boosting domestic consumption while increasing export, could work post-pandemic depends on when China winds down its zero-COVID policy,” Wenchi Yu continued. The TVBS commentator remarked that investors remain hopeful for 2023, even though the party congress did not reveal any timeline for an eventual reopening of the country.