CHINAMacroReporter

Xi Jinping's Leadership: 'The Inevitable Outcome of History'

Mr. Xi is the hero of a Resolution on the history of the Chinese Communist Party that painted his leadership as the inevitable outcome of history and all but gave him his third term. Tony Saich of the Harvard Kennedy School did a terrific analysis on this - you'll find it below, after my take.
by

|

CHINADebate

November 23, 2021
Xi Jinping's Leadership: 'The Inevitable Outcome of History'

Of late, the spotlight has been on Xi Jinping.

  • Mr. Xi is the hero of a Resolution on the history of the Chinese  Communist Party that painted his leadership as the inevitable outcome of history and all but gave him his third term.
  • Tony Saich of the Harvard Kennedy School did a terrific analysis on this - you'll find it below, after my take.

And Mr. Xi was one side of the first face-to-face, albeit virtual, call with President Biden.

  • Not much happened.
  • But as so many commentators about the call reminded us, 'Jaw jaw is better than war war,' quoting Winston Churchill.

Mr. Xi's jaw jaw to Mr. Biden was summed up by The Economist this way:

  • ‘China’s plan for world peace: America stops defying China.’
  • As The Economist explains and, as I've written here before, China places all the blame for the problems in the relationship on the U.S.

But as we know, in all fraught relationships there are two sides to the story.

  • And Mr. Biden did a good job in telling his.

Not that you would know that if you read only the also inevitable hits from the right.

  • Most of those can be dismissed, but John Bolton's Wall Street Journal op-ed shouldn't be. (You'll find it below after Tony Saich's analysis.)

Mr. Bolton  points out that

  • ‘America has no China strategy 10 months after President Biden’s inauguration.’
  • ‘Monday’s Zoom meeting between Mr. Biden and Xi Jinping only highlighted that void.’ Ouch.

Many before Mr. Biden though have tried to be the George Kennan (who came up with the strategy of containment that eventually ended the Cold War) of the age and failed.

  • But difficult or not, the U.S. has to articulate a coherent set of objectives for and policies in dealing with China.

And Mr. Bolton suggests a path that I fully associate myself with:

  • ‘China is not yet at the forefront of public consciousness.
  • ‘To ensure America’s eventual strategy is workable, political leaders need to debate the challenges so citizens can appreciate the implications of the choices they will have to make.’
  • ‘If Mr. Biden doesn’t use his Presidency’s bully pulpit to launch that debate, his potential opponents should.’ Amen.

That debate is long overdue.

  • But my breath is not being held waiting for America's leaders from both parties to get it started.

Anyway please have a look at my take on these issues and be sure to read Dr. Saich and Mr. Bolton's essays.

  • And send me your thoughts.

1 | And Then There Were Three

‘The historiographical equivalent of bulldozing a cemetery.’

The Resolution that shows how Xi Jinping's leadership is 'the inevitable outcome of history' is a little long, a little tedious, but a must-read or at least a must-skim to understand how the Party – and more importantly, Xi Jinping – have decided they want to be viewed.

  • ‘Huge resources are dedicated to crafting an official history to be accepted by all,’ writes Tony Saich of the Harvard Kennedy School in ‘Xi Jinping has made sure history is now officially on his side’ [read his full analysis below]. ‘Woe betide anyone who challenges the official narrative.’
  • This means you. So get with the program.

The Resolution was recently adopted at the recent Sixth Plenum of the Chinese Communist Party.

The Sixth Plenum of the cycle is the big deal.

  • ‘Chairman Mao Zedong once remarked that “The sixth plenum determines the fate of China,”’ writes MacroPolo’s Ruihan Huang.
  • ‘Indeed, the sixth plenum of the Chinese Communist Party’s (CCP) 19th Central Committee (CC) will determine the course of Chinese politics over the next five years and beyond.’
  • Many say that this year's Sixth Plenum will determine ‘the fate of China’ not for the next five years but for the next 100 years.

So what happened? Here’s Dr. Saich again:

  • ‘Ostensibly the meeting was held to review the Party's achievements of the past 100 years. In reality, it was about the future.’
  • ‘One outcome of the meeting was the publication of a resolution on past achievements, which was designed to show that Xi Jinping’s leadership today and in the future is the inevitable outcome of history.’
  • ‘The resolution will consolidate his pre-eminence within the party, empowering him to set the course for its second 100 years.’

For Mr. Xi too, the Resolution brought him closer to being seen as an equal to Mao and Deng.

  • ‘It was the party’s third historical summation, placing Xi alongside Mao Zedong and Deng Xiaoping, who oversaw the first two.’

‘The first two resolutions criticised the past to legitimise setting out on a brave new path forward.’

  • ‘For Mao in 1945, it was the last nail in the coffin of his rivals for party leadership by exposing their “leftist” mistakes, which had almost brought the party to ruin.’
  • ‘For Deng, the challenge was to break with the immediate disasters of the Great Leap Forward famine and the political turmoil of the Cultural Revolution, without discrediting Mao entirely. It enabled China to move into the reform era.’

‘Xi’s purpose is distinct.’

  • ‘He is not defining the way forward by criticising the recent past but rather by highlighting how the past plays into his hands.’

‘The spotlight was on Xi, his achievements, the wrongs he has righted, and the future direction for China.’

  • ‘The resolution described Xi as the “principal founder” of the party’s ruling ideology and the “core” of its leadership; it is intended to be the key document for all party members to unite around, eradicating challenges to his policy preferences.’

'Barring an accident of nature, Xi will be reappointed for a third term as party general secretary at the 20th party congress (to take place in November 2022).'

  • 'This will allow for policy continuity, rather than policy change as occurred after the previous two historical resolutions.'

I have written before that we could look at Mao, Deng, and Xi as three leaders who performed experiments to shape China each in his own vision.

  • History (not the Resolution's history) tells us that Mao’s experiment failed and Deng’s succeeded.
  • How Mr. Xi’s experiment will turn out will not be known for some time – he could very well fail and a new Deng appear with a new experiment to clean up after him.

For now, as Dr. Saich says,

  • ‘While there are murmurs of opposition, the historic plenary session would suggest that the future is in Xi’s hands.’

‘However, when politics is so deeply personalised and centralised, there is only one person to blame if things go wrong.’

  • ‘Unless, of course, we get a new resolution on history that tells us who led the party astray, despite Xi’s earnest attempts to keep policy on the straight and narrow.’

2 | Biden & Xi Have a Chat

The Objective Take. ‘After nearly 10 months of open hostilities between China and the United States since Joe Biden took office in January, the first face-to-face meeting between him and Chinese President Xi Jinping has brought a sigh of relief around the world,’ writes Wang Xiangwei of the South China Morning Post.

  • ‘The virtual summit, which lasted 3½ hours, may have produced no breakthroughs, but the mere fact that they met, agreed to disagree on a host of issues, and promised to ‘improve communication and avoid veering into conflict, was viewed to be a positive development in many quarters.’

The Chinese Take. According to The New York Times:

  • ‘The official Chinese summary of the call said that Mr. Xi told Mr. Biden that the U.S. government’s policies toward China had strained relations, and that it was in both countries’ interests to avoid confrontation.

‘The policies that the United States has adopted toward China for some period of time have pushed Chinese-U.S. relations into serious difficulties, and this is out of step with the fundamental interests of both countries’ peoples and the shared interests of every country in the world,” Mr. Xi said, according to a summary of the call issued online by the Chinese Foreign Ministry.'

  • ' “Whether China and the United States can properly handle mutual relations is a question for the century that concerns the fate of the world, and both countries must answer it.” ’

Or, as The Economist story’s subheading sums it up:

  • ‘China’s plan for world peace: America stops defying China.’

More from The Economist on the call that highlight the difficulty of the two sides reaching some accommodation:

  • ‘Mr Biden is presented in China as a more pragmatic president than his predecessor.’
  • ‘Alas, scholars and state media frame his willingness to talk as an admission of American failure.’

‘In China’s telling, American inflation is linked to Trump-imposed trade tariffs (though inflation is recent and tariffs have been in place for three years).’

  • ‘Chinese analysts blame another complex problem, supply-chain chaos, on a simple cause: Trump-era attempts to block exports of semiconductors and other advanced technology to China, while urging firms to move factories out of China.’

‘With the American economy now in “bleak” shape, the Biden administration “needs to ease relations with China in order to improve its political standing at home”, says Wang Yong, director of Peking University’s American studies centre.’

  • ‘Professor Wang adds that America is losing the hearts and minds of younger Chinese, who have “given up their illusions” that the West is sincere when it expresses concerns about Muslims in Xinjiang or democrats in Hong Kong.’
  • ‘China’s leaders still want investment and technology from the West, but they think it is in decadent decline and are decoupling from Western norms and ideas.’

Talk about a tough audience.

  • But the one at home is even tougher.

The U.S. (Partisan) Take. John Bolton in his Wall Street Journal op-ed [more from that below] on the call, ‘Biden Has a Summit with Xi, but No Strategy for China,’ writes:

  • ‘America has no China strategy 10 months after President Biden’s inauguration.’
  • ‘Monday’s Zoom meeting between Mr. Biden and Xi Jinping only highlighted that void.’ Ouch.

As for the call itself, I am in the camp of those many pundits who quoted over and over Winston Churchill that it is better to ‘jaw jaw than to war war.’ Not Mr. Bolton.

  • ‘Dulcet tones and torrents of presidential words are no substitute for clear policies,’ says Mr. Bolton – and he’s also right.
  • For jaw jaw to be better than war war, the jaw jaw has to come from reasonable objectives, persistently pursued. That is, from a strategy, which Mr. Bolton says Mr. Biden lacks.

China has oft-stated objectives and clear, if evolving, policies for attaining them.

  • In other words, a strategy.

The United States doesn’t have one yet.

  • Mr. Biden’s China objectives aren’t clear, and his policies also are evolving - so these have yet to congeal into a comprehensive strategy.
  • (For my part, I'm in the wait and see mode, cautiously optimistic.)

And that’s okay.

  • Because this creates an opportunity if the leaders of both parties are up to it. (Breath not being held.)

For, as Mr. Bolton so rightly points out:

  • ‘China is not yet at the forefront of public consciousness.
  • ‘To ensure America’s eventual strategy is workable, political leaders need to debate the challenges so citizens can appreciate the implications of the choices they will have to make.’
  • ‘If Mr. Biden doesn’t use his Presidency’s bully pulpit to launch that debate, his potential opponents should.’ Amen.
  • That debate is long overdue.

The problem of course is that the best strategies from the U.S. and China, no matter how well they are shaped and how clearly communicated, may be so inimical that armed conflict cannot be avoided.

  • As Mr. Xi implies, this is 'the question of the century.'

More

CHINAMacroReporter

May 22, 2022
The Next U.S.-China Crisis: CEOs & Boards Are Not Ready
‘The bad news is that very few corporations engaged in China have contingency plans or long-term strategies to hedge against the downside risks of growing geopolitical competition.’
keep reading
May 14, 2022
China GDP: 'A very long period of Japan-style low growth.’
Here are some of the insights from ‘The Only Five Paths China’s Economy Can Follow’ by Peking University’s Michael Pettis. This excellent analysis of China’s economy is worth a careful reading.
keep reading
May 1, 2022
'Zero Covid' & the Shanghai lockdown
Joerg Wuttke is the president of the EU Chamber of Commerce in China - the 'official voice of European business in China.'
keep reading
March 11, 2021
China, Ai, & the Coming U.S. Industrial Policy
‘The government will have to orchestrate policies to promote innovation; protect industries and sectors critical to national security; recruit and train talent; incentivize domestic research, development, and production across a range of technologies deemed essential for national security and economic prosperity; and marshal coalitions of allies and partners to support democratic norms.'
keep reading
March 11, 2021
'Why Biden Should Ditch Trump’s China Tariffs'
‘President Joe Biden has to decide whether to rescind his predecessor’s China tariffs.’
keep reading
March 11, 2021
Then There are Semiconductors
‘While American companies pioneered semiconductors and still dominate chip design, many have outsourced the actual fabrication of chips, mostly to Asia.’
keep reading
March 11, 2021
'Hard lesson for HK opposition: Extreme political confrontation is not in the designs of China'
'The radical forces in Hong Kong thought they were strong!’
keep reading
March 11, 2021
'China Turns to Elon Musk as Technology Dreams Sour'
‘China is having its techlash moment. The country’s internet giants, once celebrated as engines of economic vitality, are now scorned for exploiting user data, abusing workers and squelching innovation. Jack Ma, co-founder of the e-commerce titan Alibaba, is a fallen idol, with his companies under government scrutiny for the ways they have secured their grip over the world’s second-largest economy.’
keep reading
March 11, 2021
For Industrial Policy: National Security Advisor, Jake Sullivan
‘While American companies pioneered semiconductors and still dominate chip design, many have outsourced the actual fabrication of chips, mostly to Asia.’
keep reading
March 10, 2021
'Beijing replicates its South China Sea tactics in the Himalayas'
‘Emboldened by its cost-free expansion in the South China Sea, Chinese President Xi Jinping’s regime has stepped up efforts to replicate that model in the Himalayas.'
keep reading
March 10, 2021
'China Crackdown on Hong Kong'
‘The scale of the protests really shook Beijing. All the previous protest movements had lasted a few months, at most. This time, there was huge support, and it wasn’t dying down on its own.’
keep reading
March 9, 2021
'Neither China nor the US fits neatly into any one box’ Yuen Yuen Ang
‘Binary narratives lie behind the common misconception that China’s economic success has vindicated autocracy. (The simplistic logic is that if China is not a democracy, it must be an autocracy, and when it prospers, that prosperity must be because of its autocracy). For liberal democracies, this raises the fear that the “China model” poses an ideological challenge to democracy.’
keep reading
March 7, 2021
Part 2 | 'How Biden Can Learn From History in Real Time' Copy
‘ “International relations scholars,” the political scientist Daniel Drezner has written, “are certain about two facts:'
keep reading
March 7, 2021
How the WTO Changed China
'WTO membership, the new consensus goes, has allowed China access to the American and other global economies without forcing it to truly change its behavior, with disastrous consequences for workers and wages around the world.’
keep reading
March 7, 2021
With growth on track, China starts to unwind stimulus
‘China was the first country to open its lending and spending taps in the face of the coronavirus downturn. Now, it is the first to start to close them, giving others a partial preview at the National People’s Congressof what the end of stimulus will look like. The most notable aspect is its gradualism.’
keep reading
March 6, 2021
'Taper test - With growth on track, China starts to unwind stimulus'
‘China was the first country to open its lending and spending taps in the face of the coronavirus downturn. Now, it is the first to start to close them, giving others a partial preview at the National People’s Congressof what the end of stimulus will look like. The most notable aspect is its gradualism.’
keep reading
March 5, 2021
Nursing China’s Debt Hangover
‘China official target of 6% annual economic growth, announced Friday, is so modest it’s clear something else is going on. A plausible theory is that this is part of a strategy to rein in debt.’
keep reading
March 4, 2021
China & the U.S.: Getting Each Other Wrong
China and the U.S. seem to be in the process of reassessing their views of each other’s strengths and weaknesses. Xi Jinping appears to be seeking some balance in his assessment of the U.S. And analysts in the U.S. have reversed a trend of opinion that ‘China is inexorably rising and on the verge of overtaking a faltering United States.' They argue instead ‘the United States has good reason to be confident about its ability to compete with China.’
keep reading
March 4, 2021
'NATO's Shifting Focus to China'
‘Consider, for example, a war escalating over the defense of Taiwan. “We should not forget that the main member state in NATO, the United States, is not only a transatlantic nation, but also a Pacific nation. And the question is, if at a certain stage, the U.S. were to be threatened by China, would that invoke Article 5 in the treaty?"'
keep reading
March 3, 2021
Missing: Has anyone seen Europe’s China plan?
‘Caught between Washington and Beijing, European capitals find themselves in lack of a strategic China policy.’
keep reading
February 28, 2021
Why Beijing was right to rein in Jack Ma's rogue Ant Group IPO
‘In July 2020, just before their IPO application, Ant Financial not only abandoned the word "financial" and renamed themselves Ant Group, they attempted to list not on the Shanghai or Shenzhen exchanges, where financial institutions list, but rather on the Shanghai STAR Market, which was created as an exchange for high-tech innovators.’
keep reading
February 27, 2021
The rivalry between America and China will hinge on South-East Asia
‘In the rivalry between China and America, there will be a main zone of contention: South-East Asia. Of the two competitors, China looks the more likely prize-winner.'
keep reading
February 26, 2021
'Inside Xinjiang’s Prison State'
‘After years of first denying the facilities’ existence, then claiming that they had closed, Chinese officials now say the camps are “vocational education and training centers,” necessary to rooting out “extreme thoughts” and no different from correctional facilities in the United States or deradicalization centers in France.’
keep reading
February 24, 2021
Japan Is the New Leader of Asia’s Liberal Order
‘In an era of Chinese bellicosity, North Korean provocations, and a raging pandemic, Japan’s inconspicuous ascent to regional leadership has gone mostly unnoticed.’
keep reading
February 23, 2021
‘Patriots’ Only: Beijing Plans Overhaul of Hong Kong’s Elections
‘China plans to impose restrictions on Hong Kong’s electoral system to root out candidates the Communist Party deems disloyal, a move that could block democracy advocates in the city from running for any elected office.’
keep reading
February 23, 2021
HSBC offers lesson in corporate realpolitik
‘HSBC’s Asia pivot is a lesson in corporate realpolitik. It is just as much a recognition of the new political reality facing every western company that is dependent on doing business with China. Businesses will have to choose between western markets and access to China, and between liberal and authoritarian value systems.’
keep reading
February 23, 2021
Germany Is a Flashpoint in the U.S.-China Cold War
'As goes Germany, so goes Europe — and that’s a real challenge for the U.S. Berlin leads a European bloc that could cast a geopolitical swing vote in the U.S.-China rivalry.’
keep reading
February 22, 2021
Remaking “Made in China”: Beijing’s Industrial Internet Ambitions
‘The Chinese government is placing large bureaucratic and financial bets on upgrading and digitizing its already dominant manufacturing base. Such efforts have coalesced around one key term: the “industrial internet” (工业互联网). The successful application of it across Chinese industry would prolong and elevate the “Made in China” era.’
keep reading
February 22, 2021
How American Free Trade Can Outdo China
‘When it comes to trade, a critical dimension of the U.S. and China competition, America is ceding the field. At the same time, China has expanded its trade footprint. When it comes to trade and investment agreements, China isn’t isolated. The U.S. increasingly is. Now we have to make up for lost ground. America can out-compete China, but first it needs to get back in the game.’
keep reading
February 21, 2021
China’s ‘two sessions’: why this year’s event is so important for Xi Jinping’s vision for the future
‘The ‘Two Sessions,’ the annual meeting of the National People’s Congress, the country’s legislature, and the top political advisory body, the Chinese People’s Political Consultative Conference, begins on March 5 and runs for about two weeks.’
keep reading
February 20, 2021
‘The Future of China’s Past: Rising China’s Next Act'
‘By the Party’s own acknowledgment, Deng’s initial arrangement has run its course. It is therefore time to develop a new understanding that will do for the Party in the next 30 years what Deng’s program did in the previous era.'
keep reading
February 20, 2021
‘UNDERSTANDING DECOUPLING: Macro Trends and Industry Impacts’
‘Comprehensive decoupling is no longer viewed as impossible: if the current trajectory of U.S. decoupling policies continues, a complete rupture would in fact be the most likely outcome. This prospect remains entirely plausible under the Biden administration.’
keep reading
February 20, 2021
‘Europe can’t stay neutral in US-China standoff’
‘China aims to create a world that is not safe for Europe — strategically, economically or ideologically. Xi is actively striving to undermine the stature of democracies in the global order. The more power China amasses, the less tolerant it will become with any government that won’t toe its line. China also represents a long-term economic threat to Europe — not merely because it is an advancing competitor in a global market economy, but because Beijing’s policies are designed to use and abuse that open world economy to eventually dominate it.
keep reading
February 20, 2021
‘Beat China: Targeted Decoupling and the Economic Long War'
‘The economy is the primary theater of our conflict with China. It is now clear that the U.S. and Chinese economies are too entangled, particularly in critical sectors such as medicine, defense, and technology.'
keep reading
February 19, 2021
‘No, China is not the EU’s top trading partner'
‘This week the media seized on a report by Eurostat, the European Union’s statistical agency, to declare that China surpassed the United States in 2020 to become the EU’s main trade partner. This is simply not true.’
keep reading
February 18, 2021
‘China faces fateful choices, especially involving Taiwan’
'Should Mr Xi order the People’s Liberation Army to take Taiwan, his decision will be shaped by one judgment above all: whether America can stop him. If China ever believes it can complete the task at a bearable cost, it will act.’ ‘
keep reading
February 18, 2021
'An Unsentimental China Policy'
'Jake Sullivan, wrote in Foreign Affairs in 2019, “The era of engagement with China has come to an unceremonious close.”Yet it is worth remembering what engaging China was all about.’ For most of the past half century, efforts to improve ties with the country were not about transforming it. Judged by its own standards, U.S. engagement with China succeeded. It was only after the Cold War that a desire to change China became a prominent objective of U.S. policy.’
keep reading

Heading

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.