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China names conservative, older leadership

2012-11-15 13:29:36

By Sui-Lee Wee and Ben Blanchard

BEIJING (Reuters) - China's ruling Communist Party unveiled an older,

conservative leadership line-up on Thursday that appears unlikely to take the

drastic action needed to tackle pressing issues like social unrest,

environmental degradation and corruption.

New party chief Xi Jinping, premier-in-waiting Li Keqiang and vice-premier in

charge of economic affairs Wang Qishan, all named as expected to the elite

decision-making Politburo Standing Committee, are considered cautious

reformers. The other four members have the reputation of being conservative.

The line-up belied any hopes that Xi would usher in a leadership that would

take bold steps to deal with slowing growth in the world's second-biggest

economy, or begin to ease the Communist Party's iron grip on the most populous

nation.

"We're not going to see any political reform because too many people in the

system see it as a slippery slope to extinction," said David Shambaugh,

director of the China Policy Program at George Washington University's Elliott

School of International Affairs.

"They see it entirely through the prism of the Soviet Union, the Arab Spring

and the Colour Revolutions in Central Asia, so they're not going to go there."

Vice-Premier Wang, the most reform-minded in the line-up, has been given the

role of fighting widespread graft, identified by both Xi and outgoing President

Hu Jintao as the biggest danger faced by the party and the state.

The run-up to the handover has been overshadowed by the party's biggest scandal

in decades, with former high-flyer Bo Xilai sacked as party boss of

southwestern Chongqing city after his wife was accused of murdering a British

businessman.

Bo, who has not been seen in public since early this year, faces possible

charges of corruption and abuse of power.

One source said an informal poll was held by over 200 voting members in the

party's central committee to choose the seven members of the standing committee

from among 10 candidates. Two of them who had strong reform credentials -

Guangdong party boss Wang Yang and party organization head Li Yuanchao - failed

to make it, along with the lone woman candidate Liu Yandong.

The source, who has ties to the leadership, told Reuters on condition of

anonymity that Wang and Li Yuanchao, both allies of Hu, did not make it to the

standing committee because party elders felt they were too liberal.

However, all three are in the 25-member Politburo, a group that ranks below the

standing committee. It was earlier believed the voting was confined to the

Politburo.

"The leadership is divided," said Jean-Pierre Cabestan, a Chinese politics

expert at Hong Kong Baptist University, adding however that the new leadership

would find it easier to make progress on economic reform rather than political

change.

"It's easier for them to move to a new growth model. I think they agree upon

that and that won't be the hardest task. But I see a lot of political

paralysis."

OLDER

This is an older line-up, with the average age of the standing committee at

63.4 years compared with 62.1 five years ago. Except for Xi and his deputy Li

Keqiang, all the others in the standing committee - the innermost circle of

power in China's authoritarian government - are 64 or above and will have to

retire within five years, when the next party congress is held.

That means the party may just tread water on the most vital reforms until then,

although after that, Xi would probably have more independence in choosing his

team. The current line-up has been finalized by Xi and Hu, and by former

president Jiang Zemin, who has wielded considerable influence in the party

after the tumult over the Bo Xilai scandal.

Wang and Li Yuanchao could make it to the standing committee at the next party

congress in 2017, perhaps along with so-called "sixth generation" leaders like

Inner Mongolia party chief Hu Chunhua.

"To me it smacks of a holding pattern," said Tony Saich, a China politics

expert at Harvard's Kennedy School of Government. "I think the understanding is

that Wang Yang has a good shot in five years' time."

The standing committee has as expected been cut to seven members from nine,

which should ease consensus building and decision making.

There is now no domestic security tsar in the new committee, reflecting fears

the position had become too powerful, although top policeman Meng Jianzhu will

take charge of the portfolio from within the Politburo.

"SEVERE CHALLENGES"

Besides party chief, Xi was also appointed head of the party's top military

body, which gives him two of the three most important posts in the country. He

will take over from Hu as president in March.

Jiang, who was Hu's predecessor, did not give up the military post until two

years after giving up the party leadership.

Xi said in an address that he understood the people's desire for a better life

but warned of severe challenges going forward.

"We are not complacent, and we will never rest on our laurels," he said after

introducing the standing committee at the Great Hall of the People in a

carefully choreographed ceremony carried live on state television.

"Under the new conditions, our party faces many severe challenges, and there

are also many pressing problems within the party that need to be resolved,

particularly corruption, being divorced from the people, going through

formalities and bureaucracy caused by some party officials."

North Korean-trained economist Zhang Dejiang is expected to head the largely

rubber-stamp parliament, while Shanghai party boss Yu Zhengsheng is likely to

head parliament's advisory body, according to the order in which their names

were announced.

Tianjin party chief Zhang Gaoli and Liu Yunshan, a conservative who has kept

domestic media on a tight leash, make up the rest of the group. Zhang should

become executive vice premier.

Advocates of reform are pressing Xi to cut back the privileges of state-owned

firms, make it easier for rural migrants to settle in cities, fix a fiscal

system that encourages local governments to live off land expropriations and,

above all, tether the powers of a state that they say risks suffocating growth

and fanning discontent.

With growing public anger and unrest over everything from corruption to

environmental degradation, there may also be cautious efforts to answer calls

for more political reform, though nobody seriously expects a move towards full

democracy.

The party could introduce experimental measures to broaden inner-party

democracy - in other words, encouraging greater debate within the party - but

stability remains a top concern and one-party rule will be safeguarded.

(Additional reporting by Benjamin Kang Lim, Sabrina Mao and Sally Huang;

Writing by Ben Blanchard; Editing by Nick Macfie and Raju Gopalakrishnan)