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Chinese Politics in 2007: Annual Report
By OPCh, March/2007 (Translation: Irene Romero Iturralde)
 
 

  Hu Jintao and George Bush, click to increase
20/04/2006. George Bush - Hu Jintao's meeting in Washington. Bush and Hu's meeting during the latter's first official visit to the US ever since his investition in 2003, has showed up the double dynamics of dependence and rivalry that confront both countries and set up a strategic and multilateral debate that carries the germ of a new bipolarity.
 
Introduction

These are the most influential issues on Chinese political agenda in 2006.

The key factor in domestic affairs was the promotion of harmony as a basic principle in public management. The concept was publicised for the first time at the 2004 Fourth Plenary Session of the 16th Committee of the CPC, and stresses the need to coordinate material economic development with a more equal wealth distribution and the satisfaction of social interests. There can be no healthy developement without social justice, is now emphasized. This means a total rejection of former policies that used to put the premise "efficiency first" before justice, concepts which were promoted by Deng Xiaoping and Jiang Zemin as well.

Thus, the search for harmony involves the promotion of certain interests and values, confronting social inequalities and internal imbalances and searching solutions that will contribute to neutralise the origins of the many social conflicts emerging throughout the country. The first important sign of this new policy was the endorsement of a programme to build the "new socialist countryside". This strategy was aimed at reducing inequalities between the countryside and the cities, developing an ambitious investition plan in several fields.

The new strategy for the countryside, approved in 2006, is another inseparable part of the new development model, which shall take into account the need to increase the value of Chinese growth, layig the foundatons for a transformation of the "world's workshop" into a modern and competitive economy. This results in an active shift in Chinese investments abroad, a considerable thrust on technological sectors -defence and space-, and a bigger -and indispensable- concern for environmental issues, as well as the centralisation of some policies to limit the increasing power of some regions.

Another important subject in 2006 was the reassertion of Hu Jintao's power. Hu's political discourse was characterised by two main factors. In the first place, the assertion of China's own way, which stresses the current leaders's intention to not to imitate any foreign models but innovating from international experience and Chinese particularities. This has implied a return to old obsessions such as the separation between the State and the Party, or the building of a State based on the rule of law, promoting reinforcement of some of the more traditional ideological values. In the second place, the intensification of the fight against corruption that has shaken the internal life of the party, with the subsequent prosecution of Beijing's Vice Mayor, Shanghai's Party Secretary, and other state and Party central and territorial administration leaders. Fight against corruption is not only an unavoidable strategy to avoid social discredit of CPC but a common instrument to get rid of political rivals, especially to defeat the powerful Shanghai faction, which was born during the nearly fifteen years of Zemin's leadership and is possibly approaching its end.

In the field of foreign affairs, proofs that China is abandoning its traditional modest role are growing in number. The country's increasing economic power and the subsequent interdependence with the rest of the world have urged Chinese leaders to seek for a world in harmony that provides enough stability to stand in the way of growth. Bush and Hu's meeting during the latter's first official visit to the US ever since his investition in 2003, has showed up the double dynamics of dependence and rivalry that confront both countries and set up a strategic and multilateral debate that carries the germ of a new bipolarity. On the other hand, China's offensive in Africa is growing bigger and more diverse, covering both energy and food issues. Other relevant facts are the improvement in relationships with Russia, and the consolidation of the SCO (Shanghai Cooperation Organisation), as the best instrument to project China in the Asian region. A remarkable improvement of the relationships with the sourrounding countries can be noticed, setting the basis for the long awaited change in the tendencies towards India and Japan. The EU has in turn proved its role as China's first commercial partner.


Protagonists

Chen Jin. 'Father' of made-in-China microprocessor, accused of plagiarism.

Chen Liangyu. Party chief in Shanghai, charged with corruption.

Huang Ju. Member of the Standing Committee of the Politburo. He disappeared from political life due to health problems.

Liu Zhihua. Vice Mayor of Beijing, removed from his post for corruption.


The facts

01/01/2006 Abolition of the agricultural tax.
03/03/2006 Chinese People's Political Consultative Conference opens.
06/03/2006 Fourth round of China-Japan talks on East China Sea begins.
14/03/2006 10th National People's Congress closes.
20/03/2006 Vladimir Putin visits China.
31/03/2006 Peace mission in Lebanon begins.
01/04/2006 CPC turns "Eight Honours and Eight Disgraces" into a reference for study in Party schools.
02/04/2006 United States Secretary of Homeland Security, Michael Chertoff, visits China.
08/04/2006 Wen Jiabao's visit to South Pacific countries -Australia, Fiji, New Zealand, Cambodia- finishes.
18/04/2006 Hu Jintao trips through Africa -Saudi Arabia, Morocco, Nigeria Kenia- and USA.
20/04/2006 George Bush - Hu Jintao's meeting in Washington.
24/05/2006 China rejects US report calling it a potential military threat.
08/06/2006 Sino-american meeting to organise bilateral military relations.
15/06/2006 SCO meeting in Shanghai.
01/07/2006 Elections for China's county and township congresses begin.
06/07/2006 Nathu La Pass (China-India) reopened.
25/08/2006 China protests against Taiwanese Commander in Chief Hu Chen-pu's visit to Japan.
10/09/2006 China announces new rules for news and information publishing of foreign media in China.
13/09/2006 China expresses support for Venezuela in running for non-permanent membership of Uited Nations Security Council.
20/09/2006 End of United States Treasury Secretary Henry Paulson's visit to China.
23/09/2006 China and seven Portuguese-speaking countries adopt Action Plan for Economic and Trade Cooperation in Macao.
24/09/2006 Fourth round of China-Japan talks finishes in Tokyo.
26/09/2006 China-US talks to improve military relations in Beijing.
04/10/2006 China condemns North Korean nuclear test.
08/10/2006 The Sixth Plenary Session of the 16th Central Committee of the CPC opens.
09/10/2006 Japanese Prime Minister Shinzo Abe's visit to Beijing finishes.
30/10/2006 ASEAN-China Meeting in Nanking.
03/11/2006 China announces the development of an independent satellite navigation system.
05/11/2006 China-Africa Summit in Beijing closes.
08/11/2006 Third round of China-US strategic dialogue.
15/11/2006 Hu Jintao's trip to Vietnam, Laos, India, y Pakistan starts.
21/11/2006 China refutes US report on the lack of religious freedom.
05/12/2006 China's Central Economic Work Conference opens.
14/12/2006 Sino-American strategic economic dialogue opens in Beijing.
16/12/2006 Energy ministers of China, India, Japan, South Korea and the United States meet in Beijing.
29/12/2006 China publishes White Paper on National Defence.


Key figures and statistics

GDP growth rate in 2006 10.7%
Total employment 764 millions
Jobs created 5750000
Grain output growth 2.8%
Farmers' net income growth 7.4%
Urban residents' net income growth 10.4%
Poor population in rural areas 21480000
Reduction of poor population in rural areas since 2005 2170000
Foreign trade growth 23.8%
Foreign exchange reserves US$ 1,066.3 billion
Renminbi revaluation 3.35%
Energy consumption per unit of GDP -1.23%
R&D spending 1.41% of GDP (+20.1%)
Urbanisation rate 43.9% (+ 0.9%)
Population 1314480000 (+ 6920000)
Urban population 577060000
Rural population 737420000
Privately-owned cars 11.49 millions (+33,5%)

Source: Renmin Ribao, 1st March, 2007.


2006 in a nutshell

2006 was the year of harmony in China. The country finds itself not only looking towards a more-balanced development model, but exploring the viability of a political system that adapts to its civilisation peculiarities.


Predictions for 2007

There are two main outstanding issues in Cina's agenda for 2007. In the first place, the approval of a real right law code that will regulate private ownership and put it on the same level as State ownership. This law will be complemented by new regulation on employment hirings. In the second place, the 17th CPC National Congress will be held in the last quarter of the year, and it is supposed to see Hu Jintao's authority confirmed, as well as China's work to build a developed and autonomous society in the world.


OPCh, 1st March 2007.



Note: Every year, the OPCh will publish a report on the main events in Chinese politics.

 
 

Translation: Irene Romero Iturralde.

 
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