Robert Lawrence Kuhn Dr. Robert Lawrence Kuhn is a public intellectual, international corporate strategist and investment banker, and a renowned expert on China. He is a commentator on the BBC, CNN, CGTN, CCTV, CNBC, Fox Business, Bloomberg, and other media; senior political/economics commentator on China Global Television Network (CGTN); and a columnist in China Daily and South China Morning Post. For 30 years, Dr. Kuhn has worked with China’s state leaders and advised the Chinese government. He spoke at the launch ceremony of President Xi Jinping’s book, The Governance of China; he provided live commentary on CNN for Xi’s policy address during his U.S. state visit (2015); and he introduced to foreign audiences Xi as “core” of the CPC (2016). He is interviewed extensively on US-China relations, including the trade war (2018). For the 19 th CPC National Congress (October 2017) and 13 th National People’s Congress (March 2018), Dr. Kuhn was interviewed extensively, including 24 times on CNN and BBC World News / BBC World Service, and he was quoted in newspapers and websites in U.S., Hong Kong, Italy, India, etc. His full-page, in-depth analyses of the 19 th CPC National Congress were featured in China Daily to open the CPC Congress (“Historical Starting Point for New Stage of Development“) and to close the CPC Congress (“New Era on the Road to 2050”). His essay at the opening of the Party Congress was published in People’s Daily. Dr. Kuhn is the author of How China’s Leaders Think (featuring President Xi), and The Man Who Changed China: The Life and Legacy of Jiang Zemin (China’s best-selling book of 2005). He wrote the Introduction for Understanding the CPC, the book series by China’s ruling party, the Communist Party of China (2015). Shanghai Media Group and Dr. Kuhn are co-creators and co-producers of the award-winning, fivepart series China’s Challenges, broadcast internationally (PBS stations in the U.S.) and in China. Dr. Kuhn is writer and host; Peter Getzels is director. China’s Challenges won first prize in China News Awards twice (2013, 2018). A second season won an Emmy Award (Los Angeles, 2016). A third season (on “Xi Jinping Thought” and China 2020 / China 2050) is broadcast in late 2018. Dr. Kuhn is the creator, co-producer and host of “Closer to China with R.L.Kuhn” on CGTN (China Global Television Network, co-created by Adam Zhu), the weekly series with unique access that features China’s thought leaders and decision makers, broadcast globally and in China. Closer To China focuses on China’s politics and government, CPC/Party, economics and society, reform and development, and international affairs and relations, with emphasis on Xi’s policies and philosophy. A special documentary on President Xi’s “targeted poverty alleviation” campaign, co-produced by CGTN, Dr. Kuhn and Adam Zhu, is in production. Dr. Kuhn is host and writer. Peter Getzels is director. Dr. Kuhn was one of only two Americans, with Henry Kissinger, named as the first “China Visionaries”. He was selected by Oriental Outlook magazine (Xinhua News Agency) as one of the all-time, top-ten influential supporters of China’s ruling party/CPC (he is the only one living). An international corporate strategist and investment banker, Dr. Kuhn works with major multinational corporations, CEOs and C-Suite executives, in formulating and implementing China strategies by applying his “politico-strategic framework”. He was president/co-owner of the largest middle-market M&A firm in the U.S. (sold to Citigroup in 2000). Dr. Kuhn is creator, writer and host of Closer To Truth (produced and directed by Peter Getzels), the long-running PBS/public television series on science and philosophy (broadcast continually since 2000, over 275 TV episodes; more are in production). Dr. Kuhn is author or editor of over 30 books on China, corporate strategy, finance, science and philosophy (including, with the philosopher John Leslie, The Mystery of Existence: Why is there Anything At All). Dr. Kuhn is chairman of The Kuhn Foundation which supports new knowledge in science and philosophy, classical music, and informed relations between the United States and China. The Kuhn Foundation produced the feature documentary “Khachaturian” on the life and music of the Armenian-Russian composer Aram Khachaturian, which won the Best Documentary award at the Hollywood Film Festival. Dr. Kuhn has a B.A. Human Biology (Johns Hopkins); Ph.D. Anatomy/Brain Research (University of California at Los Angeles, UCLA); MBA (Massachusetts Institute of Technology, MIT). CNN – Quest Means Business Future of U.S.-China Trade Relations Robert Lawrence Kuhn, August 27, 2018 1 CNBC Squawk on the Street US-China Tariffs - US-China Trade War Robert Lawrence Kuhn, August 22, 2018 1 FOX BUSINESS Mornings with Maria (Maria Bartiromo) US-China Tariffs - US-China Trade War Robert Lawrence Kuhn, August 23, 2018 1 BBC World News President Xi Jinping-NPC Closing Session Robert Lawrence Kuhn March 20, 2018 HOST: Well joining me now from Beijing is Dr. Robert Lawrence Kuhn, advisor to the Chinese government and author of the book How Chinese Leaders Think. Thanks so much for joining us here on the program. Usually the NPC is seen as sort of a choreographed event: we know what to expect. But this time it felt very different. RLK: It certainly was different. You have to look at this year’s National People’s 1 Congress - and the so-called Two Sessions - as part of the “political season” which begins with the party congress in October and goes now to the government sessions in March. And normally there is a predictability and what happens at the National People’s Congress is not very significant. RLK: This year is different: China talks about a “New Era” – and this is not just words, it is really the case. If we look at the vision that Xi Jinping gave at the party congress, what we see here at the National People’s Congress we see as the implementation of that vision across a very broad front. 2 RLK: People have focused on term limits - understandably so - but the change is only for the presidency. Xi Jinping by having been made “Core” of the Party in October 2016 - actually with that designation undermined “collective leadership” - and when Xi’s name was put into the Party Constitution as the contemporary arbiter of Marxism - on which the Party is based and the Party rules the country - he then became the overarching leader, no matter what position he would hold. 3 CNN International President Xi Jinping, China, Term Limits Robert Lawrence Kuhn – March 12, 2018 HOST: Let’s talk about President Xi Jinping with our gues,t Robert Lawrence Kuhn, a longtime advisor to the Chinese government, the author of How China’s Leaders Think, and the host of Closer to China with R.L. Kuhn on the China Global Television Network. Thanks for being with us. RLK: Hi Natalie. Interesting day we’re having. HOST: Isn’t it, though? So, I guess the first question would be to follow up on your book title, how China’s leaders think. What is Xi Jinping thinking with this move? RLK: First of all, we have to understand it in context. There are twenty-one different clauses in this Constitutional Amendment, and the whole point of it is to strengthen the governance system of China. Now China is a party-state system where the party controls the state. Everyone is focusing on the abolition of term limits, and it is important, but we need to understand the context within this party-state system. In October of 2016, Xi Jinping was made “Core” of the Party, which meant the collective leadership of the past was no longer operative; that X was, in essence, for the Party, the decision maker. Then just this last October at the 19th CPC National Congress, his name was put into the Party Constitution as “Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era,”… it’s a big phrase. RLK: But what it means is that Xi is the arbiter of Marxism and party theory. That means in terms of being the Core ot the Party and the interpreter of Marxism that gives him ultimate power. He doesn’t even need a formal position when has those two and the Party continues to run the country. HOST: Is that a good thing? How can it be a good thing for the country when one person has the ultimate power? RLK: There are two issues. One is how it happened: Now the abolition of presidential term limits coordinates with the Party and military, together the three largest positions. So they’re now coordinated because he already had that power in the Party and the military. 2 Amanpour on CNN President Xi Jinping, China, Term Limits Robert Lawrence Kuhn – Minxin Pei March 5, 2018 HOST: When it comes to trade, one country more than any other has been the target of Trump’s rhetorical wrath, and that’s China. But my next guest tells me that the promised tariffs won’t bother China much, as we’ve been discussing. In any way, they in China are dealing with much more important things, like the proposal for the rubber stamp Party Congress which starts its new session today to change the Constitution, and lift all term limits on President Xi Jinping, effectively making him president for life. Now, I’ve been talking to Minxin Pei: he’s a professor of government at Claremont McKenna College in California, and to Robert Lawrence Kuhn, who is the author of How China’s Leaders Think, and he is the host of a show on the government-run CCTV news channel in Beijing. Gentlemen welcome to you both. Let me start by asking you, Robert Lawrence Kuhn there in Beijing. From the Chinese government perspective, these tariffs that the president of the United States has announced, how much does it concern Beijing? RLK: Well certainly it’s a concern, but I would call it a minor annoyance as opposed to something extremely serious. They have a lot on their plate here. The last thing they want is a trade war with the U.S., but they have to react. If the U.S. does something, there has to be something that they will do in retaliation. They will ratchet it down. They will signal, as you do, that they do not want to accelerate this, but to save face and to be appropriate, they’ll have to match it. HOST: To you Minxin Pei, how do you see this playing out? MP: If the investigations find China at fault, or guilty of some practices, then the US has a wide range of options to punish China on a trade front. And if these things happen, then US-China trade war will take place. Another thing I want to say is that US-China relations have turned a corner. This is a relationship that has headed toward a long period of confrontation, and adversarial relationships. So what is going to happen on the trade front is part of a much larger picture of geopolitical rivalry, if not competition. 2 Bloomberg TV Worldwide President Xi, China, Economy Robert Lawrence Kuhn – March 5, 2018 HOST: You were there at the Great Hall of the People. What was your main takeaway from what some have described as Li Keqiang’s impossible challenge: how to deleverage, how to take away stimulus, and still keep 6.5% growth? RLK: I don’t take the 6.5% growth as the primary objective here. I mean you have to look at what these National Peoples Congresses are. They’re not setting the vision and the strategy. That was set at the party congress in October. What we’re dealing here is the implementation of the policies. If you attend these every year you know they all look and sound the same because it’s the same structure, same kind of structure of numbers, so what you do is look for the differences. What are those subtle differences between one year and another. That’s what I focus on at these congresses. HOST: What’s the main difference you saw? 1 BBC World News Xi Jinping and the New Politburo Standing Committee Robert Lawrence Kuhn October 25, 2017 HOST: We’re going to put a question to Robert Lawrence Kuhn, who’s a long-time advisor to the Chinese government. Robert, great to see you again. You were with us at the very beginning of the Party Congress and you were at the Congress today when it finished. Did you have any vision, any inkling that President Xi Jinping would take on so much authority? Also, what about the fact that there is no successor candidates among the new leaders? RLK: I was interviewed in early 2012 by a well-known American television network and the question put to me, in January of that year, was, “isn’t Xi Jinping going to be a very weak leader because he was not appointed by Deng Xiaoping and he has no strong base of support?” 1 CNN International Xi Jinping and the New Politburo Standing Committee Robert Lawrence Kuhn - October 26, 2017 HOST: The author of How China’s Leaders Think: The Inside Story of Past, Current and Future Leaders, Robert Lawrence Kuhn is a longtime advisor to the Chinese government. He comes to us once again from Beijing. We talked this time yesterday. Good to have you back. And we discussed yesterday what we would learn about that lineup of the standing committee. It hadn’t been revealed at that point that we spoke, but we now know and is it correct to say the most significant thing is no sign of a leader in waiting? RLK: I think the most significant sign is who the people are and how they relate to each other. It’s a group that actually respects traditional norms. RLK: There was thought that Wang Qishan, for example, might violate norms by being on the Standing Committee after the traditional retirement age and that’s not the case. There is balance among the member in terms of their geographies, even their political affiliations within the party which internally are important. Two are from Shanghai, two are from the Communist Youth League - one is actually from Shanghai and the Youth League as well but he’s really from Shanghai - two have a long relationship with General Secretary Xi. And then of course General Secretary Xi has the overarching power as everyone says - and that is correct and will be correct for a long time to come. CHINA DAILY Tuesday, January 23, 2018 VISION CHINA 7 Observers offer fresh insight for new era Intellectual hails progress made in past while warning of challenges that lie ahead By LI YANG liyang@chinadaily.com.cn Robert Lawrence Kuhn has many titles, ranging from investment banker to anatomy researcher. But he is better known in China as a specialist who knows the country inside out. Over the past 29 years, he has visited almost every provincial region and spoken with people from all walks of life, including some who have gone on to become State leaders. “It’s been a great gift to my life to be able to learn so much about China’s rich civilization, political theories and the whole development,” he said. Kuhn, who is from the United States, learns as an outsider but communicates as an insider. In his talk show Closer to China with R.L. Kuhn on the China Global Television Network, he presents China’s complex story to the world through candid, intimate discussions with the country’s decision-makers. In a hotel suite in Wangfujing, downtown Beijing, one busy lunchtime last week, Kuhn shared his thoughts on Chinese politics with China Daily, between exercising and a meeting of the Communist Party of China, which he had been invited to attend as an observer. He spoke passionately about the 19th CPC National Congress, which was held in Beijing in October, describing it as “a milestone congress that set the agenda for more than 30 years”. The Party proposed two new concepts at the congress — “a new era of socialism with Chinese characteristics” and Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, which has been written into the Party Constitution. “To understand China today, it is critical to appreciate what the new era means. … I like to understand new era in two categories: its characteristics at home and abroad, and its timeline,” Kuhn said. He has obviously developed his own way of explaining terms with Chinese characteristics. That is to break down the characteristics, domestically and internationally, rather than delve into the term. He listed a number of challenges in China’s new era, from pollution to medical care, among which he said the biggest is the rising expectations of the people at home, because “now that the people have some, they want more”. The complex international environment is the main characteristic of the new era, as the world is fragmented by diverse problems and challenges, he said. While explaining what he called the timeline of the new era (2017, 2021, 2049) and expounding his understanding of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era — which he broke down into three categories: serve the people, national rejuvenation, and governance modernization — Kuhn showcased his knowledge of the Party’s files, which he has clearly learned by heart. He recited almost every key point of the 68-page report Xi delivered to the congress in October. More important, he made connections between these points, presenting them in a vivid way, seasoned with personal experiences and thinking. When asked about the effects of the anti-corruption campaign, he immediately listed 10 objectives. That’s his style of approaching Chinese issues — divergent thinking and a vigilance not to lose sight of the connections between different points. British journalist tells China’s story to the world By LIU XUAN liuxuan@chinadaily.com.cn Broadcaster sees choice and confidence in rising nation By YANG WANGLI yangwangli@chinadaily.com.cn For 20 years, Liu Xin has had a singular goal: to build a bridge of understanding between China and the outside world. The television presenter began working for China Central TV, the State broadcaster, in 1997, two years after becoming the first Chinese to take part in — and win — the International Public Speaking Competition. Early last year, her desire to share China’s story received a major boost when she was chosen to host The Point, a prime-time discussion show that airs weekdays on the China Global Television Network. She said that China entering a new era means three things: opportunities, challenges and responsibilities. “My winning speech in that 1995 national competition was about choice,” she said. “After 15 years of reform and opening-up, we Chinese now enjoy an abundance of choice in our daily lives.” After listening to General Secretary Xi Jinping’s report at the opening of I like to understand new era in two categories: its characteristics at home and abroad, and its timeline.” Robert Lawrence Kuhn, investment banker and anatomy researcher Q&A | ROBERT LAWRENCE KUHN You hold multiple titles now. How have you managed to master so many different fields? Do they have anything in common? There’s one word to describe the commonality, that is “passion”. Whatever I’ve done I want to have passion for it. To expand that a bit, it’s the passion to learn. I’m not here to teach, I love to learn. When I write a new book, it’s something I want to learn about. I use that vehicle to learn. So passion about learning is the common denominator. China has given me a hugely rich life because of everything I’ve learned here. the 19th National Congress of the Communist Party of China, Liu said she was impressed with his use of the word “confidence”. “It’s the confidence China has developed through knowing that our system works. The confidence about who we are as a people, as a culture. And it’s the confidence about our future role in the world,” she said. “As media workers, we believe we have a great story to tell. In the past, people relied on a few correspondents or experts for information and opinions on China. But more people are tuning in to Chinese media for information, both traditional platforms such as TV and online.” As more questions emerge in the minds of those watching from outside China, Liu said the opportunities to tell stories from inside the country are growing. However, so too are the challenges. “Because of the ideological differences between China and the West, China has always been the subject of Western media criticism, which is often downright bashing based on falsehoods,” she said. From left: Zhao Jianguo, head of the international communication bureau of the Publicity Department of the Communist Party of China Central Committee; Jiang Qingzhe, Party chief of the University of International Business and Economics; China Daily reporter Andrew Moody; Guo Weimin, vice-minister of the Information Office of the State Council; speakers Robert Lawrence Kuhn and Liu Xin; Zhou Shuchun, publisher and editor-in-chief of China Daily; and Zhang Jianmin, head of translation and interpretation for the Ministry of Foreign Affairs, pose for a photo at the inaugural Vision China event on Monday at UIBE. FENG YONGBIN / CHINA DAILY Now that China has defied all kinds of predictions of a collapse or economic hard landing, Western observers are having a hard time explaining the China phenomenon, she said, adding that the result is an ignorance-based superiority complex mixed with bewilderment and iced with jealousy. During her 30-minute program, Liu conducts live interviews with guests in the studio or via satellite link to get a Chinese perspective on two to three topics that affect people around the world. “I understand the urgency to be more assertive, but I believe we always need to be aware of the danger of putting feelings before reason, putting opinions before facts,” she said. “Nationalism is my biggest enemy. “President Xi has said we need to improve the quality and effect of development. I believe this also applies to China’s international communication. The Chinese people will work hard toward a community of a shared future, regardless of how others view us.” Meanwhile, Liu has a job to do. “As a journalist, our duty is to tell China’s story as it is, one topic at a time, one show at a time,” she added. The real fun of reporting in China is the closeness to the actual story, the big fascinating story of China merging into the 21st century.” Andrew Moody, China Daily senior reporter China has always been the subject of Western media criticism, which is often downright bashing based on falsehoods.” Liu Xin, host of The Point on China Global Television Network Q&A ANDREW MOODY How do you overcome the challenges of showing the real China to the world, especially to those who have biases against China? It’s a long-term thing, and you cannot change this overnight. There are negative perceptions about China. It’s about engagement. If China has much more interactions with the rest of the world, then people will see China as it actually is. One of the 2035 objectives is to better increase China’s soft power. Organizations like China Daily can actually play a role in improving China’s soft power. But I do think it’s a long-term process, and China doesn’t need to be too sensitive toward criticism. Despite living and working in China for a decade, Andrew Moody’s ability to speak Mandarin is still at a basic level. Yet that has not stopped the award-winning journalist from interpreting China’s story for the world. Moody joined China Daily nine years ago and is now a senior correspondent. He has written more than 150 cover stories for the paper’s European Weekly and African Weekly, examining a wide range of issues including the Belt and Road Initiative. The job has provided him with firsthand experience of how China is developing as well as the chance to record reactions from the outside world, especially in the West, toward the nation’s growth and changes. He was at the Great Hall of the People to hear General Secretary Xi Jinping deliver a report to the 19th National Congress of the Communist Party of China in October, when the concept of a “new era” was first mentioned. “The consensus of the various people I spoke to in the hours after the speech was that China’s entering a new era could be a momentous turning point in world history,” Moody said. According to his interviews, he said, people believe that a more confident China is striding into a world that it also is helping to shape. Moody has his own understanding of the new era. With 40 years of reform and opening-up, he said China has reached a point where it can move on in many ways, such as in foreign policy, global governance and domestic reforms. “China has reached a new junction and has to move forward.” The British journalist has written many stories that explain China to the rest of the world, and these have brought him many honors, including being named a State High-End Project Foreign Expert. “I like reporting on China because it’s perhaps the 21st century’s most fascinating story,” he said. “The real fun of reporting in China is the closeness to the actual story, the big fascinating story of China merging into the 21st century, the stories that maybe Western media don’t really have the chance to interview.” Moody sees his task as communicating China to a global audience, and there are still a number of things that need to be done, he said. “I go back to the UK quite a lot, and I still don’t think that people are aware of the impact of a much bigger Chinese economy and China’s being a more significant player in the world,” he said. “All I can do is to report and do stories one by one.” Q&A | LIU XIN As a professional journalist, what do you think China’s mainstream media could do to better report China to the outside world in such a media transformation age? It’s challenging. I think we need to be aware of new technology. And the content is very important. If we’re more confident, we can really be more sincere, be more at ease with our problems and our achievements. So let’s have a sincere conversation, not shy away from the problems we’re facing. That’s why I say let’s tell the China story as it is. It’s not 100 percent about achievements. Every day we see mixed news, we have mixed feelings, so let’s be factual, let’s be sincere and let people decide whether they want to watch us or not. This is going to take time, but I think if we follow the right philosophy, the right steps, we’re going to make it. What they say Vision China is the first highend event organized by China Daily and UIBE after the two sides launched a partnership. By telling China’s stories in an objective and rational manner, it aims to help students get to know a real China and an objective world, and to understand China in the new era. Wang Jiaqiong, president of the University of International Business and Economics I’ve learned a lot from Vision China today. What impressed me most is how to eliminate bias against China when telling China’s stories. The three experts shared a common opinion, which is to show a true China and not care too much about comments from the outside world. The sincerest story is often the most touching one. Zhu Yue, a senior student majoring in international politics from Beijing International Studies University It was an interesting lecture. It was good to understand certain aspects about China. It would be good to have things like this abroad because it’s about China. You don’t have to explain China to the Chinese people, but you need to explain it to the outside world. Nektarios Palaskas, science and technology counselor for the Swiss embassy This event was very interesting. You invited distinguished speakers, and all of them are of global thinking and have a vision about China. China is booming, and everyone is interested. I enjoyed hearing the speakers’ ideas about how China will be in the future. I came here with an open mind. Ratthawoot Nanthaikuakool, first secretary of Thai embassy A12 Saturday, March 10, 2018 CONTACT US Agree or disagree with the opinions on this page? Write to us at letters@scmp.com If you have an idea for an opinion article, email it to oped@scmp.com Power with purpose Robert Lawrence Kuhn explains why abolishing presidential term limits may well be good for China To interview delegates and officials at the annual National People’s Congress in Beijing, interspersed with being interviewed in the international media about China abolishing term limits for its president, is to inhabit parallel universes. Delegates and officials focus on clusters of issues from controlling financial risk and reducing pollution to scientific innovation and business stimulation, plus enhancing and institutionalising China’s anti-corruption campaign with a powerful National Supervision Commission. The international media, no surprise, focus on the constitutional amendment ending term limits, assuming President Xi Jinping will now serve in a for-life dictatorship, reminiscent of Mao’s China, the Soviet Union, the Kim family in North Korea and some African countries. It is no challenge to explain why abolishing term limits is bad for China – dependency on one human being who is not omniscient but is hostage to fortune, fewer and weaker checks and balances, forced conformity in a complex society with no easy answers, etc. The system begins stronger in that hard choices can be made and consistency maintained, but it could become brittle in that officials are more wary and may say things they do not believe. It is a challenge to explain why abolishing term limits is good for China, so that’s what I will do. First, some background. There are three separate issues being conflated: the significance of ending term limits, the intended consequences and the unintended consequences. Though terminating the two-term limit for China’s presidency captures headlines, it is more the symbolic, final step ratifying Xi’s near-absolute power than the big breakthrough itself. Many expect this experiment to end badly for China. It is indeed an experiment but its end is not set Xi’s prior designation as “core” of the Communist Party in October 2016 and the inscribing of “Xi Jinping Thought...” into the party constitution in October 2017 were more meaningful. Moreover, the Politburo Standing Committee, the highest authoritative body in China, unambiguously supports Xi. China watchers see the front page of People’s Daily – published the day after the new Standing Committee marched out on stage – which featured Xi’s photo on top, many times larger than the smaller, subservient photo of all seven members lined up on the bottom. All this reconfirms that, in a system where the party controls the state – especially where the party is Marxist and ideology is its basis for being – Xi, as core of the party, with his name inscribed in the constitutions of party and state as the contemporary arbiter of Marxism, will be the uncontested, overarching leader of China for the rest of his sentient life. For intended consequences, the official line is that the purpose is national cohesion brought about when the three top leadership positions – general secretary of the party, chairman of the Central Military Commission and president of the republic – are aligned temporally and held by a single person. This makes sense, but as a primary, proximal motivation, it is not entirely persuasive. The current structure has existed for decades without outcry or angst (not to mention that the three positions could be unified by installing term limits on the other two). The “new era”, marked by economic, social and global complexities, is said to require firm and consistent leadership, making moot inner party struggles and even mitigating political gossip, facilitating focus on the tasks of governance and development. Specifically, because advancing reform has become more difficult, with entrenched interest groups resisting change, the message must now go forth that all must get with the programme, because you can’t outwit or outwait Xi. Because, it is said that only Xi has the vision, experience, competence and character to bring about “the great rejuvenation of the Chinese people”, especially from 2020 to 2035 and ultimately to 2050 – bringing China to global centre stage – Xi’s unimpeded leadership is deemed essential. China cannot afford “downtime” to accommodate a change of leadership, and after Xi’s success at the 19th National Party Congress came the time to make clear that he will call the shots for the foreseeable future. Some argue that doing away with term limits shows the superiority of the Chinese system as it allows flexibility in matching leadership to requirements (though what national leader, when extending his reach, has not claimed “current requirements” as justification?). The party-run Global Times stated that ending term limits does not mean China has reverted to president-for-life tenure. (But who can deny that however long Xi holds the top positions seems largely up to him?) As for the unintended consequences, the almost unanimous, disparaging foreign reaction – other than US President Donald Trump’s – did not burnish China’s international image. More worrisome would be a reluctance by officials to offer constructive opposing views on central policies. By stressing term limits, the international media misses fundamental changes going on in China – this year, innovation, streamlining of government, facilitation of business (cutting bureaucracy and reducing taxes), rural revitalisation and rural land reform. The 13th National People’s Congress shows how the grand vision and mission of the 19th National Party Congress is translated into specific strategies and policies. If one sees only term limits, one cannot visualise the big picture. As for Xi maintaining the presidency perpetually, it doesn’t actually matter much – this is the deep insight of how China’s party-state system works. Xi as core of the party and “Xi Jinping Thought...” as the party’s (and now the state’s) guiding principle means that Xi can transfer titular party leadership and/or the presidency to others and still maintain his overarching power. It may well be that, after serving two or even three more terms, rather than trying to find and install another leader like himself, he will move to bring about true democracy within the party. Here’s the best case. Xi will not be leader-for-life, but leader long enough to bring about China’s national rejuvenation and establish a Chinese kind of democratic norms. Could Xi continue until around 2035, when China plans to have “basically” achieved full modernisation, heading towards, by mid-century, 2050, a “great modern socialist country”? Many expect this experiment to end badly for China. It is indeed an experiment but its end is not set. It may be a race between achieving Xi’s grand vision and some untoward perturbation that could cause fracture. All factors considered, I am not saying abolishing term limits is absolutely good for China. I am saying it may be good – because of China’s special conditions and Xi’s special capabilities – but if it is good, it’s just for this once, and it’s just for so long. That’s the best case. I’m rooting for Xi. Robert Lawrence Kuhn is a public intellectual, international corporate strategist and investment banker, and China expert/commentator. He is the author of How China’s Leaders Think Private clubs deserve ‘cushy’ rental deals Edith Terry says private recreational clubs are part of Hong Kong’s heritage and have contributed to nurturing less popular sports, as well as a unique hybrid culture In 1964, a young German, fresh off the plane at his first job, went in search of a social group. He found a home away from home in Hong Kong’s oldest private recreational club, newly relocated from a prime location on Victoria Harbour, where City Hall is today, to a modest flagstone boathouse beneath Island Road on Hong Kong’s south side. Fifty-five years later, Frank Pfeiffer, a Zen Buddhist and mountain climber, is still an active member of the Victoria Recreation Club, established in 1849. He has watched it ring the changes from Hong Kong’s colonial society in the 1960s, when it had only two Chinese members and no female members, to the hybrid institution it is today, under its first Hong Kong Chinese chairman, Wu Kam Shing. Its membership is a spectrum of Hong Kong’s diverse and athletically minded middle class. There is the Hong Kong Chinese court reporter who visits the club in Deep Water Bay every morning at 6am on her way from home in Ap Lei Chau to her workplace in Sha Tin. There are her fellow swimmers, many elderly, who swim out to the buoys, rain or shine, hot or cold, every day. Some 100-150 “paddlers” use the club as a base for outrigger canoeing, dragon boating and paddle boarding. Some of the sports were unknown to Hong Kong before the club nurtured them, others, like dragon boating, are deeply traditional. In the current debate over the future of the 67 private recreational clubs that pay minimal rents to the government, history has been swept aside. True, they were designed on a colonial template, in which the diverse ethnic groups were given separate retreats. Membership at the pinnacle clubs was reserved primarily for the British. For other ethnic groups, there was a Chinese Recreation Club, a Club de Recreio, a Filipino Club, an Indian Recreation Club, and so on. Hong Kong’s colonial rulers reviewed the lease system for the private clubs in 1968 and 1979, and in the run-up to the handover in 1997 when leases were restricted to 15-year terms. At the handover, a number of leases were extended to ensure a so-called smooth transition. The sceptic would argue that this was a dodge, and indeed, in 2011, during the first post-1997 review of private recreational leases by the Legislative Council, most of the clubs seemed oblivious to public concerns as well as new requirements for “opening up” The government argued that subsidies were needed because use of land for sports and recreation would never trump commercial utilisation What the Western belt and road sceptics are missing Wenshan Jia says there are opportunities for the whole world to benefit from China’s initiative China’s “Belt and Road Initiative”is an original plan to carry out a new type of “collaborative globalisation” above and beyond US-led type. It was proposed five years ago by President Xi Jinping after the tapering off of US-led globalisation in 2008. Xi offered three principles: mutual consultation, joint construction and shared benefits. China has since then fully executed 101 agreements with 86 countries, and total investment in the 24 countries along the belt and road regions has amounted to US$50 billion, resulting in 75 industrial and trade zones, and 200,000 jobs. With its focus on infrastructure, the initiative is a model not only for developing countries, but also industrialised ones in Europe and North America, where ageing infrastructure needs replacing. It also adapts to each local, national or regional condition, situation and need. It is proving very democratic, more so than the lopsided US-led globalisation that spurred a populist, isolationist backlash across the Western world. China has done a proper job of explaining to the West what the initiative is and extended a sincere invitation to each country to join. Many think tank scholars and major media outlets in the West have found it potentially lucrative and expressed relatively strong support. Yet, instead of appreciating China’s efforts to both inherit the liberal agenda of globalisation and forge a new path for global development, many Western political elite, led by the US, have started a campaign to resist the initiative. From Australia to the US , and the UK to Germany, there are calls for the West to cut interactions with China to minimise or resist its so-called “sharp power”. The labels typically applied to China include “authoritarian” and “predatory”, citing Beijing for not upholding “freedom, democracy and individual rights”, the core values of the West. This attitude towards the initiative reveals not only a contradiction in the Western mind, but also the narrowing or even closing of minds. Isn’t it beneficial to meet the goals of forging connectivity and cooperation, as articulated in Xi’s effort to enrich and expand the meaning of the “free world” by liberating humankind from geographical, financial, political and cultural barriers? The world is no longer the West versus the rest, as we already live in a world connected by the internet. The initiative seeks to make the world more interconnected for both the West and the rest, contributing to the construction of a human community with a shared future. Recently, the initiative has inspired and spawned a push for localisation, particularly the Indo-Pacific strategy led by the so-called “Quad” of the US, India, Japan and Australia. Some Western media view it as a rival or alternative to China’s belt and road. But I would argue that it can be part of China’s initiative as long as the three Chinese principles (mutual consultation, The anti-China smear campaign must be replaced by a discourse involving consultation and communication joint construction and shared benefits) are observed in the Quad strategy. The belt and road was created to be an all-inclusive platform, so Beijing has no need to fear localisation as long as such strategies do not seek to contain China or disrupt its plan. It would be wise for the Quad and China to look for ways to collaborate. Quad countries need not take an antagonistic stance towards China; the anti-China smear campaign must be replaced by a discourse involving consultation and communication. The world has experienced more than enough damaging talk, not to mention wars. The core principles of Xi’s belt and road strategy must be always applied in China’s interactions with local strategies. If China is, as German Foreign Minister Sigmar Gabriel told the Munich Security Conference in February, “the only country in the world with any sort of genuinely global, geostrategic concept”, then Western leaders should cultivate a genuinely global strategy in line with China’s vision, for the betterment of all humankind. Wenshan Jia, PhD, is a professor in the School of Communication, at Chapman University (California) and a research fellow at the National Academy of Development and Strategy, Renmin University of China to schools and community organisations. Following the last well-publicised review in 2013 and the current investigation seeking new venues for public housing, they are no longer complacent. Should the private clubs have got their cushy rental deals in the first place? At the time of the reviews 50 years ago, the government argued that subsidies were needed because use of land for sports and recreation would never trump commercial utilisation. What was true then is even more so today. The high cost of land in Hong Kong is a drag on innovation and creativity. The existence of the private recreational clubs means it has been less of a drag on sports. Most of the clubs with government leases are framed around core sports – golf, tennis, horse racing, swimming, sailing and rowing, to name a few. Hong Kong athletes whose development was supported by these clubs have gone to the Olympics and other international competitions. In the 1940s, the Victoria Recreation Club was the driving force behind Hong Kong’s participation in the International Olympic Committee and the Hong Kong Sports Federation. Public pressure on the clubs to forge community ties and contribute to Hong Kong through “opening up” schemes is appropriate – but not the pressure to convert their land to high-rise estates. The loss is not only to the core sports they represent but also to their unique DNA, which is the foundation of Hong Kong – diverse, cosmopolitan and adventurous. If you want to look for a Hong Kong that is not just about money, one place to look is here. Edith Terry is the honorary secretary of the Victoria Recreation Club. She writes in a personal capacity Stand-up paddlers participate in an event held at the Victoria Recreation Club. Photo: Jonathan Wong CHINA DAILY Wednesday, December 27, 2017 VIEWS 9 2017 YEAR-END: Politics Robert Lawrence Kuhn Watching China’s year for history When future historians reconstruct the long history of China, they will likely circle 2017 as a year of significance. I’ve seen it all this year, and attended or even participated in the major events. I’ve conversed with Chinese leaders and experts, and searched for meaning. I didn’t appreciate the opportunity I’ve had until I began reviewing the year from China’s domestic perspective, seeking themes and trends, discerning from what we know about the recent past to what we might forecast about the near-term future. It takes no flash of insight to see the leadership and vision of President Xi Jinping headlining almost every event. Following is the review of the meaningful events of 2017. January: Xi began the year with a memorable speech at the World Economic Forum in Davos, Switzerland, mounting a roaring defense of globalization, free trade, and Robert Lawrence Kuhn economic openness and liberalization. It was the first-ever speech by China’s head of state at Davos and, as commentators the world over noted with amazement and irony, as the United States under President Donald Trump was apparently retreating from the world and abrogating global leadership, China under President Xi was apparently defending the international order and promoting global governance. March: The annual “two sessions” of the National People’s Congress, China’s top legislature, and the Chinese People’s Political Consultative Conference National Committee, the top political advisory body, seemed to radiate more energy than usual, perhaps in anticipation of the 19th National Congress of the Communist Party of China in the fall. A highlight was the adoption of the draft general provisions of civil law, a step closer to a long-needed unified civil code. I sensed delegates’ growing confidence and assertiveness to represent their particular sectors in the competitive marketplace of public ideas and government funding, a competition that is vital for the development of China’s kind of consultative democracy. This was especially true of the CPPCC National Committee, whose members are often leading experts in their fields, such that even though they do not have legal authority to pass laws, they have moral authority to exert pressure and affect change. It did not escape notice that, throughout the “two sessions”, Xi was recognized repeatedly as “core” of the CPC Central Committee and of the whole Party. Belt and Road to the fore May: The first “Belt and Road Summit” (the Belt and Road Forum for International Cooperation), held in Beijing, was the diplomatic highlight of the year in China. Some 130 countries participated, including 29 heads of state and government. The goal was no less than the transformation of the economic structure of the developing world: building infrastructure and connectivity, stimulating development, alleviating poverty, reducing severe imbalances, promoting South-South cooperation, and revitalizing globalization. Xi called the Belt and Road Initiative “the project of the century”. July: China celebrated the 20th anniversary of Hong Kong’s return to the motherland. It was a time of reflection for the cosmopolitan city, long a global leader in economic freedom and competitiveness. Hong Kong had flourished: its way of life preserved, its economy dynamic. But times change. With Shanghai and Shenzhen on the rise, and with some claiming the “one country, two systems” principle is in decline, Hong Kong faces new challenges. August: The People’s Liberation Army celebrated its 90th anniversary. In a move both practical and symbolic, the PLA established its first overseas logistics base in Djibouti, situated strategically on the Horn of Africa. Xi Jinping, who is also chairman of the Central Military Commission, said the PLA is becoming “strong” informationized armed forces. “The Chinese people love peace,” Xi said. “We will never seek aggression or expansion, but … No one should expect us to swallow the bitter fruit that is harmful to our sovereignty, security or development interests”. Foreigners are wondering: what is the PLA’s long-term plan for operating overseas? What will be the impact of the PLA’s modernization and reform, especially its burgeoning blue-water navy with multiple aircraft carriers? August: China hosted the BRICS Summit in Xiamen, East China’s Fujian province. The five BRICS countries — Brazil, Russia, India, China and South Africa — have increasing influence on global economy and politics, but does BRICS as an organization make sense? China certainly thinks so, and promoted the BRICS Summit as representing a new kind of multilateral global governance. There are complexities: political instabilities in Brazil and South Africa; the growing, comprehensive cooperation between Russia and China; the sensitive, multifaceted relationship between India and China. Throughout the year, events on the Korean Peninsula continued to intrude. While China continued to call for denuclearization and dialogue, just hours before Xi gave the opening speech at the BRICS Summit, the Democratic People’s Republic of Korea detonated its most powerful nuclear bomb ever. 19th Party Congress and the New Era October: The highlight of the year was, as expected, the 19th CPC National Congress. Not quite expected were the far-reaching proclamations and, taken together, the magnitude of their significance. I witnessed history and see six highlights. First, Xi’s name and thought were written into the CPC Constitution — “Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era”. Xi is now, officially, the overarching creator and arbiter of political thought, and combined with his designation as “core” of the CPC, he is now the undisputed, unimpeded leader with singular authority. Xi Jinping “thought” is built on the twin pillars of people orientation and national rejuvenation, with the new concept of development (innovation, coordination, green, open, sharing) driving a new kind of economic growth. Second, the “New Era”, which is intended as a policy-energizing game changer, is a conceptual lens with which to view the range of goals, strategies and concepts that compose Xi’s way of thinking and the Party’s new direction. The “New Era” is envisioned in three temporal segments: (i) from now until the fulfillment of China’s first centenary goal of a “moderately prosperous society” in 2020 (2021 being the 100th anniversary of the CPC); (ii) from 2020 to 2035, when the CPC states it will build on the foundation of the moderately prosperous society so that, after “15 years of hard work”, the country will “basically” realize “socialist modernization”; and (iii) from 2035 to 2050, when the CPC states it will “work hard for a further 15 years” and “develop China into a country that is prosperous, strong, democratic, culturally advanced, harmonious, and beautiful”. Realizing this vision at mid-century, around 2050, with China being respected as a great, modern, socialist country, is the second centenary goal (2049 being the 100th anniversary of the People’s Republic of China). Third, the new “principal contradiction” in China’s “New Era” is between “unbalanced and inadequate development” and “the people’s ever-growing needs for a better life”, which includes increasingly broad demands for “democracy, rule of law, fairness and justice, security, and a better environment”. From now on, this new-era principal contradiction, replacing quantitative GDP growth with qualitative improvement of life, is what will guide China’s domestic affairs and policies. Fourth, the Party’s leadership role in governing the country is expanding and the Party’s stringent approach to governing itself is intensifying. The Party will be more deeply embedded within agencies of government and sectors of society (including private companies, foreign businesses and educational institutions), and by reforming and purifying itself, the Party’s governance will be stricter and more comprehensive. The anti-corruption campaign, not only continues, it has been enhanced. Fifth, the “New Era” has China moving closer to center stage of the world and making greater contributions to humanity, offering “Chinese wisdom” and “Chinese solutions” for world problems. China’s diplomacy will be proactive, championing the development of a community with a shared future for humanity and encouraging the evolution of the global governance system. Sixth, I watched the new senior leaders of China, the seven members of the new Standing Committee of the Political Bureau of the CPC Central Committee, walk out on stage, ending months, really years, of speculation and rumor. Because everything in China reports to a Political Bureau Standing Committee member, and because of the Party’s principle of collective leadership, their personalities, composition and balance determine the vision, strategies and policies that shape China. The importance of the Political Bureau Standing Committee remains true today, but its importance frankly is also less true today. It is hard to overstate the consequences of Xi’s name written into the Party Constitution, thus inscribing into perpetuity his predominant status and assuring his continuing pre-eminence in the coun- try’s political life. Following the 19th Party Congress, some might have expected a respite, a slower November and December. They were anything but. Form is substance November: The “state visit-plus” of US President Donald Trump came at a delicate moment. Amid pomp and pageantry, including a personal tour of the Palace Museum (Forbidden City), $253 billion in business deals were signed, a world record, though critics complained it was all transactional, nothing structural. The number, some said, was more form than substance, but here, perhaps, form was substance. Both Xi and Trump hailed the visit as “successful and historic”. Yet, on sensitive topics, one could be forgiven for seeing sunlight between their positions. On trade, Xi lauded the business deals and market access, “which will deliver great benefits for the two peoples”. Trump sought improved trade with China based on “a level playing field for our workers” and solving the “massive trade distortion” — which, characteristically, Trump blamed on past US administrations, not on China. On the Democratic People’s Republic of Korea, Xi reiterated China’s firm commitment for a denuclearized Korean Peninsula and direct communications, while Trump said that they “agreed not to replicate failed approaches of the past” and he called for “increased economic pressure until North Korea abandons its reckless and dangerous path”. Subsequent to Trump’s visit, China announced revised regulations that were indeed structural. China will reduce or eliminate (over time) limits on foreign ownership of financial services sectors, including insurance, commercial banking, securities, futures, and asset management. Significantly, the State Council, China’s Cabinet, established a Financial Stability and Development Committee to oversee financial stability and boost risk prevention (including close monitoring of “shadow banking” and corporate debt). This new supra-ministry commission will be empowered to make decisions related to reform and development, coordinate issues concerning monetary policy, and establish financial policies and related fiscal and industrial policies, thus improving the financial regulatory system. At the Asia-Pacific Economic Cooperation Leaders’ Meeting in Vietnam, Xi strengthened his themes of making economic globalization more open, balanced and inclusive; lauded regional multilateralism for promoting common interests; and stressed the Belt and Road Initiative for advancing global connectivity. What struck me in Xi’s speech was what he inserted about poverty: “To lift all the remaining poor people out of poverty is a solemn commitment made by the Chinese government to the people. It is uppermost in my mind, and I have spent more energy on poverty alleviation than on anything else.” “Upper most in my mind?” “More energy on poverty alleviation than on anything else?” An extraordinary statement from the president! Although Xi has been making high-profile visits to numerous poor counties and villages, relentlessly championing “targeted poverty alleviation” for realizing the “moderately prosperous society”, this was his clearest statement that poverty alleviation is his highest priority. Main contradiction reinforced Two unpleasant events in Beijing reinforced the new “principal contradiction”, highlighting “the people’s ever-growing needs for a better life” as that surprisingly powerful lens for viewing Chinese society. The first was alleged child abuse at a kindergarten. The second was a fire in which 19 migrant workers died. In both cases, netizens reacted with anger: in the alleged child abuse, anger about a perceived coverup; in the fire, anger for the disorderly and inconsiderate way of evacuating migrant workers. When Xi first announced the new principal contradiction at the 19th Party Congress, some dismissed it as arcane Partyspeak. Public reaction to the alleged child abuse and to the fire revealed its prescient and perspicacious wisdom. The second volume of Xi Jinping: The Governance of China, a collection of 99 of Xi’s speeches, conversations, instructions and letters, was published. The book offers a resource to follow the development of Xi’s ways of thinking and ideas and to understand China’s new guiding philosophy and the specific elements that compose it. The month ended with what may seem a light touch when Xi called for China to upgrade its toilets. Toilets among the year’s highlights? Xi was serious and his point is probative. For China to become a more civilized society, the hygiene of the people must be improved (especially in rural areas), and for China’s tourism industry to blossom, better bathrooms are needed. Although China’s leader talking toilets elicits smiles, and some say it downgrades his dignity, it demonstrates, above all, Xi’s intrinsic commitment to improve the quality of life for the Chinese people. December: In the first nine days of the month, Xi engaged with four international events, stressing common commitment to build a community of a shared future for all humanity. The four engagements SHI YU / CHINA DAILY To the “CPC in Dialogue with World Political Parties High-Level Meeting”, Xi described four views of the future: a world that is safe and free of fear; prosperous and free of poverty; open, inclusive and free of isolation; and environmentally clean and beautiful. At the “Fourth World Internet Conference”, Xi asserted how the internet posed new challenges for sovereignty, security and development. At the “2017 Fortune Global Forum”, Xi called for openness and innovation to enhance global economic growth, pledging to liberalize and facilitate trade and foreign investment in China. And at the “South-South Human Rights Forum”, Xi emphasized that “human rights must and can only be promoted in light of specific national conditions and people’s needs”. The CPC’s Dialogue with World Political Parties was path-setting in that it put the world on notice that a transformed CPC under Xi is reaching out globally with pride and confidence — explaining, especially to developing countries, the developmental benefits of party leadership and party building. The point of debate, as it were, has shifted from whether the China model of a perpetually ruling party (with all that entails) is good for China to how the China model is good for other countries. At a meeting of the Political Bureau of the CPC Central Committee, Xi directed authorities to improve digital infrastructure, promote the integration and sharing of digital resources, and protect data security, in order to better serve the nation’s economic and social development as well as to improve people’s lives. The big vision is to turn China into a world leader in big data and a global innovation hub for artificial intelligence by 2030. The last major event of the year was the annual Central Economic Work Conference, which identified “three tough battles” for the next three years: preventing and defusing risks (especially financial risks), eliminating absolute poverty (China’s 2020 goal), and curbing pollution (for instance, encouraging investment in environmental projects). Setting three-year targets was itself an innovation (over the traditional one-year targets), thereby strengthening long-term thinking, reducing pressures to make hasty decisions, and giving markets stable expectations. The priority of reducing absolute debt was modified to controlling a rise in borrowing, such that China’s debt-to-GDP ratio does not further deteriorate. This signaled that growth would not be jeopardized and (to the disappointment of some) debt-driven growth would continue. To contain financial risk, China will crackdown on irregular and illegal activities in its chaotic financial industry and intensify regulatory scrutiny; continue supply-side structural reform (reducing overcapacities); and maintain a proactive fiscal policy, a prudent and neutral monetary policy, and a basically stable yuan exchange rate. Resisting arguments for shrinking Stateowned enterprises, China will make SOEs “stronger, better and bigger”; and the government will seek efficiencies by becoming more of an investor and less of an operator. China pledged to open up its markets further and to balance trade by boosting imports (US pressures, expressed vividly by Trump, were not mentioned). Theoretical foundation After five years of “practice”, the theoretical foundation of China’s economic development is now labeled, “Xi Jinping Thought on Socialist Economy with Chinese Characteristics for a New Era”, paralleling the phrase added to the Party Constitution two months earlier. The “thought” is based mainly on Xi’s new concept of development — innovative, coordinated, green, open and shared development — which has been the core of his economic philosophy. For the first time at this annual conference, topics other than economics were on the agenda. Diverse public concerns were addressed, such as burdensome homework for schoolchildren, sex discrimination in the workplace, and online scams. This was a clear consequence of how China’s new “principal contradiction” in the “New Era” now drives domestic policy; as Chinese citizens seek a “better life”, the government must respond. To pick one message to characterize the year, it is this. In 2017, under the leadership of Xi, China set the trajectory, in all vital areas, of the country’s domestic development and international engagement for the next 30-plus years, to mid-century, to 2050. Every year brings challenges. For China, no doubt, big ones lie ahead. In 2018, China will celebrate the 40th anniversary of reform and opening-up. The world is watching. The author is a public intellectual, international corporate strategist and investment banker, and China expert/commentator. He is co-creator (with Adam Zhu) and host of CGTN’s Closer to China with R.L. Kuhn and “The Watcher” commentaries. October 28-29, 2017 5 COMMENT OPINION ChinaDaily chinadaily.com.cn/opinion Robert Lawrence Kuhn New era on the road to 2050 Iwitnessed history sitting in the Great Hall of the People during the 19th National Congress of the Communist Party of China. I listened raptly to Xi Jinping, general secretary of the CPC Central Committee, when he delivered his new-era-defining report. I heard the amendment to the Party Constitution that enshrined “Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era”. I watched members of the new Standing Committee of the Political Bureau of the CPC Central Committee walk out on stage. I was awed by the presence of the leadership, past and present. And I was overawed by Xi’s grand vision for China and the country’s increasing, radiating confidence. Most of all, I marveled at the remarkable and historic transformation of China, which means so much to the Chinese people and which in this new era will mean so much to the rest of the world. Having departed the Great Hall of the People, I reflected how I, an American, found myself caught up in the welling Chinese patriotism of the 19th CPC National Congress. Certainly, I was experiencing firsthand this inflection point in Chinese history, when China envisions itself becoming a fully modernized country and taking proactive part in international affairs, and regaining its leading seat at the high table of great nations. What have I just witnessed? Following are some personal observations. A general consensus describes four primary outcomes of the 19th Party Congress: Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era; a new “contradiction” that defines China’s principal social challenge; a China that takes “center stage in the world”; and the Party enhancing its leadership of society, including maintaining, indeed intensifying, its anti-corruption campaign. To me, however, a highlight was the specificity of Xi’s vision of China, not only establishing policies for the next five years, but also framing the agenda and setting the strategies for the next 30 years. This congress, Xi said, is the “confluence” of the “Two Centenary Goals”: a moderately prosperous society by 2020 (2021 being the 100th anniversary of the CPC), which will likely be fulfilled within the term of the 19th Party Congress, and a great, modern, socialist country by 2050 (2049 being the 100th anniversary of the People’s Republic of China), which is being planned by the 19th Party Congress. In a multi-meaning refinement, the path to mid-century is now designed in two stages. In the first stage, from 2020 to 2035, the Party states it will build on the foundation of the moderately prosperous society such that, after “15 years of hard work”, the country will basically realize “socialist modernization”. In the second stage, from 2035 to 2050, the CPC states it will build on a basically achieved modernization, “work hard for a further 15 years” and “develop China into a great modern socialist country that is prosperous, strong, democratic, culturally advanced, harmonious, and beautiful”. China portrays its mid-century self as a global leader in every area of human consequence: economics and trade, science and technology, military and defense, culture and governance. But Chinese leaders, and officials in general, seem to have a different highlight. While the “Two Centenary Goals” are certainly vital, especially with new stages and specificity, they focus on the amendment to the Party Constitution: “Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era”. “The (Xi’s) thought is the biggest highlight of the 19th National Congress of the CPC and a historic contribution to the Party’s development,” said Zhang Dejiang, the third-ranking member of the Standing Committee of the Political Bureau of the 18th CPC Central Committee. Liu Yunshan, the fifth-ranking member, said the elevation of Xi’s thought to the Party’s guiding principle is of great political, theoretical and practical significance. I take a closer look at Xi’s thought: first by examining each of its elements, then by considering its unified significance. “Xi Jinping” is the “core” of the CPC Central Committee and of the whole Party, and he thereby at the top level provides the “centralism” of the Party’s cardinal principle of democratic centralism. The “Thought” is the totality of Xi’s fundamental principles. I see four broad categories: people orientation, national rejuvenation, comprehensive development, and Party leadership. In his report, Xi listed 14 categories: Party leadership over all aspects of society; people-centered policies; deepening reform comprehensively; new concept of development (innovation, coordination, green, open, and sharing); people as masters of the country; adherence to rule of law, comprehensively governing the country by law; socialist value system and cultural confidence; protecting and improving people’s livelihoods; harmonious coexistence of man and nature (ecological civilization); national security; the Party’s absolute leadership over the military; “one country, two systems” and promoting reunification with Taiwan; international community of a shared future for all humanity; and comprehensive and strict Party governance. The term “thought” in Chinese has special meaning because before this it had been associated only with Mao Zedong — “Mao Zedong Thought”. “Socialism” is a set of political ideas with a complex history, unified by public or common ownership of the means of production and concern for the masses. “Chinese characteristics” is the phrase, originating with Deng Xiaoping, that adapts Marxism to China’s special conditions — the Sinicization of Marxism in modern China — which includes the market playing a decisive role in the allocation of resources and the encouragement of non-public, for-profit businesses, while at the same time State-owned enterprises still playing a dominant role. “New Era” is a new idea in the constitutional amendment, and it is designed to profoundly transform the essence of socialism with Chinese characteristics into the vision, concepts and strategies that compose Xi’s way of thinking. The more I reflect, the more I see “New Era” as a conceptual lens with which to view the 19th Party Congress. Semi-official Party analysts say the new era answers five questions. Robert Lawrence Kuhn What “road” to take? Socialism with Chinese characteristics under new historical conditions. What kind of country to build? First, a moderately prosperous society and then a modernized socialist country. What development to realize? Better life and common prosperity for all. What goal to achieve? The great rejuvenation of the Chinese nation. What contribution to make? Facilitate world peace and prosperity (exemplified by the Belt and Road Initiative of building infrastructure in developing countries). Thus, Xi Jinping joins only Mao Zedong and Deng Xiaoping in having his name affixed to a political philosophy in the Party Constitution, a blazing sign lost on no one. It then would follow that the “New Era” into which China is now entering is the third era of the CPC and by extension of the People’s Republic of China. A seemingly subtle but significant change is the Party’s judgment of what constitutes the fundamental “contradiction” in Chinese society. (“Contradiction” is a Marxist term expressing a particular way of political thinking — dialectical materialism — which identifies “dynamic opposing forces” in society and seeks to resolve the resulting tensions). The principal contradiction has evolved from one between the ever-growing material and cultural needs of the people and backward social production to that between “unbalanced and inadequate development and the people’s ever-growing needs for a better life,” Xi said. The needs for the people to live a better life are increasingly broad and have to be met. Not only have their material and cultural needs grown; their demands for democracy, rule of law, fairness and justice, security, and a better environment are increasing. This “New-Era” contradiction, replacing quantitative GDP growth with qualitative improvement of life, is what will drive China’s policy. The mission of a CPC congress is to review and assess achievements of the previous five years, and to forecast challenges and set targets for the subsequent five years (and beyond). Overall, for the 19th Party Congress, the ambition of the goals and the comprehensiveness of the categories were clear, amplified by the commitment to deepen reform. Here, by category, are what stood out. The Party and the fight against corruption. Confidence in socialism and the increasing role of the Party in managing all aspects of the country is unequivocal, and the increasingly strict governance of the Party, by reforming and purifying itself, is unambiguous. Moreover, the anti-corruption campaign not only continues but also will be enhanced. Economy. After more than three decades of rapid growth, China’s economy has been transitioning to slower but higher-quality growth. Supply-side structural reform has been written into the Constitution. No GDP growth targets are set. The country focuses on the real economy (as opposed to speculation, such as in the real estate sector). China is not backing away from State-owned enterprises, rather it will support State capital in “becoming stronger, doing better, and growing bigger, thereby turning Chinese enterprises into world-class, globally competitive firms”. Consumption is fundamental in driving economic growth. The framework of regulations must be improved, prudent macroeconomic and monetary policy maintained, and interest and exchange rates made more market-based. For economic development, innovation leads, especially in science and technology. Poverty alleviation. Xi has made the elimination of extreme poverty in China by 2020 a cornerstone of his domestic policy. After all, how could China claim to have achieved a moderately prosperous society by 2020 if millions of its citizens would be still living in extreme poverty? Opening-up. China reasserts its commitment to become more open, including easing market access and protecting the rights and interests of foreign investors. China’s economists see foreign competition as upgrading the quality and cost efficiency of Chinese companies, thus better serving Chinese consumers. Rule of Law. Strengthening and institutionalizing the rule of law, and weakening arbitrary rule of officials, is a priority. Reflecting Xi’s commitment, the Party is setting up a central leading group for advancing law-based governance in all areas, coordinating the activities of judicial organs. The goal is to complete the transformation of China’s legal system by 2035 with theoretical foundations and practical enforcement. Ecology. Beautiful China is one of the country’s main descriptions for its second centenary goal by the middle of the century. This modernization is characterized by harmonious coexistence between humanity and nature (such as nature parks) and it requires substantial bolstering of regulatory agencies and their enforcement powers. Armed forces. China’s goal is to transform the People’s Liberation Army into a world-class military by mid-century, basically completing military reform and modernization by 2035, with information technology/cyber applications and strategic capabilities prioritized. Especially significant for Xi’s mission are the two “anti’s” — anti-corruption and antipoverty — the former to support the Party’s continuing leadership, the latter as a prime example of what the Party has delivered. Xi does not downplay a realistic appraisal of problems, including social imbalances, industrial overcapacities, financial system risks, endemic pollution. “Achieving national rejuvenation will be no walk in the park,” Xi said, an example of his plainspoken candor. “It will take more than drum-beating and gong-clanging to get there.” The speculations of China watchers, and the focus of the international media, have been on the new Standing Committee of the Political Bureau of the CPC Central Committee. Because everything in China reports to a standing committee member, composition and balance determine the vision, strategies and policies that will shape China. This remains true today, but less true today. It is hard to overstate the significance of Xi Jinping’s name written into the Party Constitution. Xi is now, officially, the originating designator and overarching arbiter of “Thought” as it relates to “Socialism with Chinese Characteristics for a New Era”, which is the guiding political theory of China and encompasses, essentially, everything in China. For Xi to be named in the CPC Constitution is the ultimate in authority, surpassing even “core” (which already had superseded all other leaders), thus setting into perpetuity Xi’s predominant status and assuring his preeminence in the country’s political life. That said, to know China is to know the members of the Standing Committee. They are a highly competent, highly experienced group: six of the seven have run provinces or province-level municipalities, many of which, in terms of population and GDP, are the equivalent of major nations. Traditional norms of balance and age are respected. It’s a diverse group — by geography, education and political career. They ZHAI HAIJUN / FOR CHINA DAILY have worked together, in various combinations, for years. With much now being written about each member, I’ll just offer some personal reflections. First, of course, is Xi Jinping, general secretary of the CPC Central Committee, whose prior experience included governor of Fujian province and Party secretary of Zhejiang province and Shanghai. In 2005, I was advised to study the “Zhejiang model”, which promotes entrepreneurship to generate economic development. I met Xi, who was then Zhejiang provincial Party secretary, and he recommended that I study China both “horizontally” across diverse regions and “vertically” through the history of its development. “To understand our dedication to revitalize the country, one has to appreciate the pride that Chinese people take in our glorious ancient civilization,” Xi said. “This is the historical driving force inspiring people today to build the nation. The Chinese people made great contributions to world civilization and enjoyed long-term prosperity,” he said. “Then we suffered over a century of national weakness, oppression and humiliation. So, we have a deep self-motivation to build our country. Our commitment and determination is rooted in our patriotism and pride.” But he cautioned that pride in China’s recent achievements should not engender complacency. Second, premier of the State Council, is Li Keqiang, who was Party secretary of Henan and Liaoning provinces. When I visited Li in Liaoning, he explained the complex challenges of revitalizing State-owned enterprises while creating a fertile environment for private businesses. Li shared the same experience of Xi as educated youths in the countryside in the 1970s. The experience gave them the chance to know better rural China and the lives of rural people and thus fostered their people-orientation. The following members are new: Li Zhanshu, who was governor of Heilongjiang province and Party secretary of Guizhou province, has been director of the general office of the CPC Central Committee since 2012. Wang Yang, vice-premier, is former Party secretary of Chongqing municipality and Guangdong province. At the height of the global financial crisis in early 2009, he argued it was imperative to restructure Guangdong’s economy, so that it can move up the ladder of industrialization and promote more knowledge-based, high-tech, lowpolluting businesses. Wang Huning, secretariat, is director of the Policy Research Office of the CPC Central Committee. Wang is well known for providing intellectual vision and sophistication in support of practical strategies and policies, ranging from political philosophy to international relations. Zhao Leji, new chairman of the Central Commission for Discipline Inspection, has served as head of the CPC Organization Department, and before that, as Party secretary of Qinghai and Shaanxi provinces. In addition to his responsibilities for Party and government officials, Zhao provided strong support for the poverty-alleviation mission. Han Zheng is Party secretary of Shanghai. Under his leadership, Shanghai has become a recognized leader in trade, logistics and finance. What is the impact of all this on China’s international relations? There is no need to speculate. Xi himself, in his report, openly and boldly tells all who will listen. China, he says, “has become a great power in the world”. China’s global engagement is proactive, confident and growing. Economics and trade drive China’s power, exemplified by the much-needed Belt and Road Initiative, but diplomacy, the soft power of culture and media, and the hard power of a blue-water navy projecting power, are developing rapidly. As Xi said, the new era sees “China moving closer to center stage and making greater contributions to mankind”. The country is now offering “Chinese wisdom” and “Chinese solutions” to the international community — the experiences and lessons of China’s remarkable development, especially to developing countries. Regarding Taiwan, which exemplifies Chinese sovereignty, Xi painted a bright red line. “We will resolutely uphold national sovereignty and territorial integrity and will never tolerate a repeat of the historical tragedy of a divided country,” Xi emphasized. “We have firm will, full confidence, and sufficient capability to defeat any form of Taiwan independence secession plot.” China has asserted again that it is no threat to any country. No matter how powerful China becomes, China’s leaders say it will never seek hegemony or pursue expansionism. Nonetheless, some foreigners remain suspicious, wary of China’s long-term ambitions. Who knows future circumstances, they worry? Who knows how China may change? Although I fear self-fulfilling prophecy, I am encouraged that China appreciates such sensitivities and works to build confidence. The 19th Party Congress, especially Xi’s report, is an epic narrative of what China has accomplished, what China has yet to achieve, and what China envisages as necessary to be a great nation. Xi, now, carries the authority; he also bears the burden. Setting that new target date of 2035 for China to achieve basic modernization, Xi sees China as standing at a new historic starting point and socialism with Chinese characteristics as exploring new horizons. China has entered a new era and the road ahead leads, apparently, to great nation status by 2050. The author is a public intellectual, international corporate strategist, and China expert/ commentator. He is co-creator (with Adam Zhu) and the host of China Global Television Network’s Closer to China with R.L.Kuhn. CONTACT US China Daily 15 Huixin Dongjie Chaoyang, Beijing 100029 News: +86 (0) 10 6491-8366; editor@chinadaily.com.cn Subscription:Ā+86 400-699-0203; subscribe@chinadaily.com.cn Advertisement:Ā+86 (0) 10 6491-8631; ads@chinadaily.com.cn Phone app: chinadaily.com.cn/iphone China Daily USA 1500 Broadway, Suite 2800, New York, NY 10036 +1 212 537 8888 editor@chinadailyusa.com China Daily Asia Pacific China Daily Hong Kong Room 1818, Hing Wai Centre 7 Tin Wan Praya Road Aberdeen, Hong Kong +852 2518 5111 editor@chinadailyhk.com editor@chinadailyasia.com China Daily UK 90 Cannon Street London EC4N 6HA +44 (0) 207 398 8270 editor@chinadailyuk.com China Daily Africa P.O.Box 27281-00100, Nairobi, Kenya +254 (0) 20 522 3498 (Nairobi) editor@chinadailyafrica.com enquiries@chinadailyafrica.com subscription@chinadailyafrica.com CHINA DAILY Wednesday, October 18, 2017 VIEWS 11 Five years on Robert Lawrence Kuhn Historical starting point for new stage of development The 19th National Congress of the Communist Party of China, which begins on October 18, will set the leadership and establish the policies for the next five years, at least. While Party national congresses are always seminal events in the political life of the country, there is reason to expect that this congress will have even greater and longer-reaching impact. The context of the 19th CPC National Congress is the grand vision for China presented by CPC Central Committee General Secretary Xi Jinping, who is now the “core” of Robert Lawrence Kuhn “the CPC Central Committee and of the whole Party”. It is an epic narrative of what China has remarkably achieved, what China has yet to do, and what China envisages as necessary to become a great nation. Xi’s grand vision is famously expressed as “the Chinese Dream”, described as “the great rejuvenation of the Chinese nation”, which has personal and national implications. It is specified by two overarching goals: the two centenary goals of establishing a moderately prosperous society by 2020 — the 100th anniversary of the CPC is 2021 — and establishing China as a “fully modernized, socialist nation” by the 100th anniversary of the People’s Republic of China in 2049. The first goal, which includes the total elimination of extreme poverty in the country, will likely be achieved within the fiveyear term of the 19th CPC National Congress. It is the second goal that is of special interest at this time, because in drawing the roadmap and formulating the policies to achieve China’s mid-century goal, this Congress may set the agenda for the next 30-plus years. The CPC national congresses are the highest authority of CPC governance and decision-making. The CPC constitutional provision of holding congresses every five years was reaffirmed by Deng Xiaoping in the early days of reform (in part to establish order and collective responsibility after a period of chaos and political vicissitudes), and since 1982, Party congresses have been held scrupulously on schedule. The congresses establish the senior leadership of the Party and hence the nation by electing the CPC Central Committee, which in turn elects all top Party positions, and also the Central Commission for Discipline Inspection; review and assess the achievements and challenges over the five years since the previous Party Congress; set the vision, goals and objectives, agenda and priorities for the subsequent five years; revise the Party constitution (to keep up with the times); and project an image of unified purpose and direction to engender national confidence and commitment. The review and assessment of the previous five years and setting the agenda and priorities for the subsequent five years are formally presented in the Report, delivered by the general secretary representing the outgoing Central Committee and thus reflecting the consensus view of the Party leadership. Ratified by the congress (after minor modifications), it becomes the guiding document that drives policy for the incoming Central Committee. On the day following a congress, the first plenum of the new 19th Central Committee is convened to elect the Party’s new senior leadership, including the Political Bureau, the Standing Committee of the Political Bureau (to which, in essence, everything in China reports), and the general secretary of the Central Committee. Also approved are the Central Military Commission (which oversees the People’s Liberation Army), the Secretariat (which runs Party daily operations), and the head of the Central Commission for Discipline Inspection. The planning for the national Party Congress follows similar patterns. Beginning more than a year in advance, it involves both formal and informal processes. The formal process includes the election or appointment of about 2,300 delegates (2,280 delegates at the 19th National Congress) from among the Party’s over 89 million members, at all levels and in all sectors, and the preparation of the Report via an elaborate system of extensive research in targeted areas (involving thousands of experts), solicitation of broad input, drafts (or sections) circulated to numerous Party experts and officials for comments, and iterative intense reviews by higher bodies and senior leaders. In addition, smaller groups are assigned the more sensitive tasks of amending the Party constitution and recommending candidates for the new Central Committee and senior leadership positions. Final decisions for this year’s congress, as well as final edits of the Report, were made at the Seventh Plenum of the 18th CPC Central Committee, held on Oct 11 to 14, days prior to the opening ceremony of the 19th CPC National Congress. To understand the position and role of CPC Central Committee General Secretary Xi at the 19th Party National Congress, we should appreciate what it means for Xi to be the core. It was in October 2016, at the Sixth Plenum of the 18th CPC Central Committee, that Xi was designated the “core” of the CPC Central Committee and of the entire Party. The appellation was an unambiguous assertion that China requires strong leadership to maintain stability and ensure development given China’s unprecedented, complex challenges: domestically, slower growth, industrial overcapacity, endemic pollution, unbalanced development, income disparity, social injustice, social service demands; and internationally, regional conflicts, sluggish economies, volatile markets, trade protectionism, ethnic clashes, terrorism, geopolitical rivalries, and territorial disputes. Moreover, because China must deepen reform to achieve the goal of being a moderately prosperous society, the resistance of entrenched interest groups must be overcome. In fact, the necessity of having a leadership core to maintain stability and expedite reform was a primary factor relating to Xi’s elevation to be the core. In addition, not only does Xi have the responsibility for China’s transformation; he is also accountable for it. He has shown courage in combating rampant practice of graft, bribery and illicit patronage. Xi’s relentless anti-corruption campaign is altering how officials in government and managers in industry work, and even how they think. And let no one assume that Xi’s battle against corruption has been risk-free. Xi as the core does not change the Party’s cardinal principle of “democratic centralism”. The Party says it is encouraging the democratic solicitation of input and feedback from Party members, lower-ranked officials, and the general public; and strengthening centralism through Xi’s core leadership. In a complex world, given the diverse interests and forces in Chinese society, the Party asserts that the Chinese Dream cannot be realized without unity. Strong leadership is required to build and maintain unity for China to continue its development. When Xi received the core appellation, he was already general secretary of the Party, chairman of the Central Military Commission, and president of the country — the three highest leadership positions in China — so how does being the “core” augment his perceived stature or actual power? The 2016 Party plenum communique confirmed that “the collective leadership system … must always be adhered to”. Nonetheless, there must have been shifts in terms of both the setting of the agenda and making final decisions — or else making Xi the core would have little meaning. When foreigners dismiss the political aphorisms of China’s leaders as simplistic sloganeering, they miss an opportunity to enrich their understanding. Chinese officials certainly hold Xi’s frameworks in high esteem. Xi’s thought for the Party, the inner-Party directives, include the “eight regulations” (against waste and perks); “four self-confidences” (in the country’s development path, The China model, Xi said, successful at home, also broadens the way for developing countries to modernize, thus providing Chinese wisdom and Chinese solutions for problems facing mankind. theories, systems, culture of socialism with Chinese characteristics); opposing the “four evil winds” (formalism, bureaucracy, hedonism, decadence); the “four greats” (struggles, projects, enterprises, dreams). The combined intent is to make Party members, especially Party and government officials, more dedicated, committed, competent and loyal, with exemplary moral standards of probity and rectitude. It is no small order. The Party’s unremitting anti-corruption campaign, unprecedented under Xi, has won strong public support and will certainly continue. But some foreign analysts mistakenly see Xi’s anti-corruption campaign as largely a tool of political power, thus reflecting a superficial and one-dimensional understanding of China. Befitting the size and complexity of the country, for almost every decision of importance, China’s leaders have multiple motivations. For the anti-corruption campaign, these motivations include respect for the rule of law and judicial impartiality; effective functioning of the Party devoid of personal interests; public trust in the Party; efficient economic resource allocations (corruption distorts markets); expediting reform (by breaking up “interest groups” that resist reform); maintaining national unity (by removing officials with non-standard political ambitions); elevating morality of Chinese society; restoring ethical standards of Chinese civilization; and facilitating China’s emergence as a world-business center and global role model. Xi’s thought for the country — his new ideas, new strategies, new initiatives set forth over the past five years — can be encapsulated as the overall vision of the “Five in One” construction (economic, political, cultural, social, ecological); governance of the country via his “Four Comprehensives” (a moderately prosperous society; deepening reform, strengthening the rule of law, strictly governing the Party); and renewed economic development via the Five Major Development Concepts (innovation, coordination, green, open, sharing), plus “supply-side structural reform”. SHI YU / CHINA DAILY Xi’s thought for national rejuvenation includes a grand vision for global governance, consisting of eight big diplomatic concepts: a global community of shared destiny and future; win-win cooperation; economic globalization; fairer global governance; a new kind of major power relationship; expanding cooperation while managing differences; multilateralism; and people-topeople exchanges. Moreover, Xi’s Belt and Road Initiative — facilitating economic development in developing countries, especially by building much-needed infrastructure — is China’s “project of the century”. China recognizes it has international responsibilities and seeks to uphold a common, comprehensive, cooperative and sustainable security strategy. China’s own requirement is to protect the country’s three sacrosanct “core interests” — its political system, economic development, and national sovereignty (territorial integrity). China appreciates that to be a major country, with its political influence reflecting its economic strength, and also to protect its own core interests, its diplomacy must be pro-active. China does not claim that its “China model” can be adopted by other countries, but the world should understand Xi’s principles of governance as optimally suited for China’s domestic conditions. Party congresses have similar styles and to casual observers, they can all seem much the same. But they do have differences, which are usually subtle and often meaningful. For the 19th National Congress, some of the things to look out for are: Are political frameworks and policies stated in their expected forms? If so, confidence in political and economic stability is reinforced. How is General Secretary Xi Jinping’s status as “core” further stressed, as expected? Who are the members of the new Standing Committee of the Political Bureau and what are their portfolios? Assuming the Party Constitution is amended to include Xi’s new ideas, new strategies, new initiatives, will they be given an overarching label? What is the composition of the new Central Committee? In listing the essential economic, political, cultural, social and ecological policies, are there shifts of emphasis that, however nuanced, suggest changing priorities? For deepening reform, surely stressed, what targets are specified? For example, what will be stated explicitly about Stateowned enterprise reform? Environmental protection is a high priority, but what specific regulations and enhanced enforcements distinguish the fight against pollution under Xi from those of previous congresses? Many social areas will be highlighted — for example, education, healthcare, rural land reform, migrant worker residencies — but do any stand out? As already affirmed, the anti-corruption campaign will continue, but will its intensity or direction change in any manner, will it be institutionalized? How will the forthcoming National Supervisory Commission work? What is the relative prominence of military reform and modernization? What is the relative prominence of international affairs, given the high-profile Belt and Road Initiative and China’s intense, pro-active diplomacy? Forecasting the 19th CPC National Congress is not all guesswork and triangulating rumors. Following tradition, Xi offered to Party leaders a preview of his Report. Speaking on July 26, he outlined China’s achievements since the previous national congress: new concepts of development, deepened reform, enhanced rule of law, strengthened environmental protection, and a more capable military. China, Xi said, has, after suffering century-long hardships and tribulations, taken three historic leaps, from standing-up to becoming better-off to becoming stronger. Xi called for a comprehensive, strategic and forward-looking action program, highlighting the success and vitality of socialism with Chinese characteristics, the increasing strength of the Party, and China’s expanding circle of friends in the international community. In China, he stressed, political legitimacy is founded on competence and accomplishment. Significantly, Xi asserted that China’s development stands at a new historic starting point and that socialism with Chinese characteristics is entering a new development stage. The CPC cannot rest on its laurels, he stressed. The country faces daunting challenges. He warned the Party against self-satisfaction and blind optimism. Xi’s comments resonated with his core values and bear witness to his consistency. In 2006, then Zhejiang Party Secretary Xi told me that China should be proud of its successes, but its “achievements should not engender complacency”, adding “we need to assess ourselves objectively”. Preparing for the upcoming congress, Xi recognizes that the people’s desire for a happier life is stronger than ever. They want better education, higher incomes, stable jobs, reliable social insurance, higher quality healthcare, more comfortable living conditions, a more beautiful environment and a richer cultural life. And there has been an inflection point in China’s international perspective, reflecting the nation’s consequential global engagement. The China model, Xi said, successful at home, also broadens the way for developing countries to modernize, thus providing Chinese wisdom and Chinese solutions for problems facing mankind. The influence of the 19th CPC National Congress and the impact of Xi Jinping’s thought seem for decades to come. The author is a public intellectual, international corporate strategist, and China expert/commentator. He is co-creator (with Adam Zhu) and host of CGTN’s Closer to China with R.L. Kuhn. 16 Wednesday March 21, 2018 FORUM CPC-led system a political innovation Editor’s Note: The Two Sessions, the annual meetings of China’s top legislative and advisory bodies, have been under global spotlight for the past few weeks. This year’s Two Sessions are of extraordinary importance as they have adopted the constitutional amendments, restructured government institutions and elected the new national leadership. To understand what the institutional changes mean for China’s future, as well as the policy agenda for the coming year, Global Times (GT) Washingtonbased correspondent Hu Zexi talked to Dr. Robert Lawrence Kuhn (Kuhn) who is a long-time China observer, and author and editor of over 25 books. Kuhn has been invited to Beijing to take a closer look at this year’s Two Sessions. GT: What kind of policy issues are you following during the Two Sessions? Kuhn: The proposed amendments to the Constitution of the People’s