Xi Set to Open Party Congress at Challenging Time for China

A journalist takes a photo of a screen showing Chinese President Xi Jinping at the press center ahead of China's 20th Communist Party Congress in Beijing on October 15, 2022. (AFP)
A journalist takes a photo of a screen showing Chinese President Xi Jinping at the press center ahead of China's 20th Communist Party Congress in Beijing on October 15, 2022. (AFP)
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Xi Set to Open Party Congress at Challenging Time for China

A journalist takes a photo of a screen showing Chinese President Xi Jinping at the press center ahead of China's 20th Communist Party Congress in Beijing on October 15, 2022. (AFP)
A journalist takes a photo of a screen showing Chinese President Xi Jinping at the press center ahead of China's 20th Communist Party Congress in Beijing on October 15, 2022. (AFP)

Chinese President Xi Jinping will take the stage on Sunday to kick off a historic congress of the ruling Communist Party, where he is poised to win a third term that solidifies his place as China's most powerful ruler since Mao Zedong.

The congress comes at a tumultuous time, with Xi's adherence to his zero-COVID policy battering the economy, while his support for Russia's Vladimir Putin has further alienated China from the West. Still, diplomats, economists and analysts spoken to by Reuters say Xi is set to consolidate his grip on power.

The roughly week-long congress will take place with around 2,300 delegates, mostly behind closed doors, in the vast Great Hall of the People on Tiananmen Square. The Chinese capital has ramped up security and intensified COVID screening. In nearby Hebei province, steel mills were instructed to cut back on operations to improve air quality, an industry source said.

The opacity of Chinese politics, which has been heightened since Xi assumed power a decade ago, means party watchers are left to speculate over who will be named to key posts and what those appointments mean.

Still, few expect significant deviation in direction during a third Xi term, with continued focus on policies that prioritize security and self-reliance, state control of the economy, more assertive diplomacy and a stronger military, and growing pressure to seize Taiwan.

The congress will conclude with the introduction of the next Politburo Standing Committee (PSC), the elite body that now numbers seven and that Xi has come to dominate.

"The likelihood is that the new line-up will be uncompromisingly 'Xi-ist'," said former British diplomat Charles Parton, a fellow at the London-based Council on Geostrategy.

The congress will likely begin with Xi reading a lengthy report in a televised speech that will outline broad-brush priorities for the next five years. It begins a months-long process of personnel change at the top of the party and government that will conclude in March at the annual session of parliament.

In securing a third term Xi breaks with the two-term precedent of recent decades. Also breaking with norms: no successor to Xi, 69, is expected to be identified, analysts say, which would indicate he plans to remain in power even longer.

Mystery man

China-watchers are most interested to know who among the PSC members will be tapped as the next premier - a job charged with the daunting task of managing the world's second-largest economy - when Li Keqiang steps down in March.

While several senior officials are on "usual suspects" lists, none is the obvious choice to succeed Li - an uncertainty that departs from the norm.

Still, analysts say, the views of any individual matter less nowadays as Xi has sidelined those seen as "reformers" in favor of his more state-driven and nationalistic economic policies.

"There is increasing evidence that promotion decisions over the past few years have been made less on technocratic ability, which you might expect from reformers, and more in terms of loyalty to Xi Jinping, so I think we should retire this reformers idea really," said Mark Williams, chief Asia economist at Capital Economics.

Expectations

Xi's opening speech at the last congress, in 2017, was broadly upbeat, including ambitious plans to turn China into a leading global power by 2050. He mentioned "reforms" 70 times in a speech that lasted nearly three-and-a-half hours.

Since then, circumstances have changed dramatically: China's economy has been battered by COVID curbs, a crushing property sector crisis and blowback after Xi's clampdown on the tech sector under the banner of "common prosperity". Globally, Beijing's relations with the West have sharply deteriorated.

Investors and countless frustrated Chinese citizens hoping the congress marks a milestone after which China begins laying groundwork to dial back on zero-COVID appear increasingly likely to be disappointed as Beijing has this week repeatedly reaffirmed its commitment to the policy.

Analysts also say the congress is unlikely to trigger any immediate or dramatic changes in policy to revive an economy that is seen on track to grow about 3% this year, falling far short of the official target of around 5.5%.

"Between now and March 2023, we expect no significant policy changes, particularly to the landmark zero-COVID strategy and the unprecedented curbs on China's property sector," Nomura analysts wrote.



Hurdles Remain as Israel and Hamas Once Again Inch toward a Ceasefire Deal

 A tent camp for displaced Palestinians is set up amid destroyed buildings in the Khan Younis refugee camp, southern Gaza Strip, Saturday, Jan. 4, 2025. (AP)
A tent camp for displaced Palestinians is set up amid destroyed buildings in the Khan Younis refugee camp, southern Gaza Strip, Saturday, Jan. 4, 2025. (AP)
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Hurdles Remain as Israel and Hamas Once Again Inch toward a Ceasefire Deal

 A tent camp for displaced Palestinians is set up amid destroyed buildings in the Khan Younis refugee camp, southern Gaza Strip, Saturday, Jan. 4, 2025. (AP)
A tent camp for displaced Palestinians is set up amid destroyed buildings in the Khan Younis refugee camp, southern Gaza Strip, Saturday, Jan. 4, 2025. (AP)

Israel and Hamas once again appear to be inching toward a ceasefire that could wind down the 15-month war in Gaza and bring home dozens of Israelis held hostage there.

Both Israel and Hamas are under pressure from outgoing US President Joe Biden and President-elect Donald Trump to reach a deal before the Jan. 20 inauguration. But the sides have come close before, only to have talks collapse over various disagreements.

The latest round of negotiations has bogged down over the names of hostages to be released in a first phase, according to Israeli, Egyptian and Hamas officials, who spoke on condition of anonymity because they were discussing ongoing negotiations.

Israel wants assurances that the hostages are alive, while Hamas says that after months of heavy fighting, it isn't sure who is alive or dead.

Other hurdles remain.

The first phase, expected to last for six to eight weeks, would also include a halt in fighting, a release of Palestinian prisoners and a surge in aid to the besieged Gaza Strip, according to the officials. The last phase would include the release of any remaining hostages, an end to the war, and talks on reconstruction and who will govern Gaza going forward.

“If we don’t get it across the finish line in the next two weeks, I’m confident that it will get to completion at some point, hopefully sooner rather than later,” US Secretary of State Antony Blinken said in Seoul on Monday.

Here’s a closer look at the key issues holding up a deal:

The release of hostages from Gaza

During its Oct. 7, 2023, attack on southern Israel, Hamas and other groups killed some 1,200 people and took about 250 hostages into Gaza. A truce in November 2023 freed more than 100 hostages, while others have been rescued or their remains have been recovered over the past year.

Israel says about 100 hostages remain in Gaza — at least a third of whom it believes were killed during the Oct. 7 attack or died in captivity.

The first batch of hostages to be released is expected to be made up mostly of women, older people and people with medical conditions, according to the Israeli, Egyptian and Hamas officials.

On Monday, Hamas released a list of 34 names of hostages it said were slated for release. An Egyptian official confirmed the list had been the focus of recent discussions.

But Israeli Prime Minister Benjamin Netanyahu's office said the names were from a list Israel had submitted months ago. “As of now, Israel has not received any confirmation or comment by Hamas regarding the status of the hostages appearing on the list,” it said.

An Israeli official said the current impasse was due to Hamas' refusal to provide information on the conditions of the hostages, while another official said the departure of the head of the Mossad intelligence agency for negotiations in Qatar was on hold.

A Hamas official, meanwhile, said that “no one knows” the conditions of all of the hostages. Hamas officials have said that due to the war, they cannot provide a full accounting until there is a truce.

Since the war began, over 45,800 Palestinians have been killed in Gaza, according to local health authorities, who say women and children make up more than half of those killed. They do not say how many of the dead were fighters.

Pausing the war or ending it?

Families of hostages reacted angrily to reports of the phased approach, saying the government should instead be pursuing a deal that releases all the captives at once. They say time is running out to bring people home safely.

“This morning, I and everyone in Israel woke up and discovered that the state of Israel has put together a Schindler's List — 34 people who will be able to hug their families again, and 66 others whose fate will be sealed,” said Yotam Cohen, whose brother Nimrod, an Israeli soldier held hostage, did not appear on the published list.

Netanyahu has said he supports a partial deal that pauses the war, but he has rejected Hamas' demands for a full Israeli withdrawal that would end the war. Netanyahu has vowed to continue fighting until he achieves “total victory” — including the destruction of Hamas' military capabilities.

Israel has inflicted heavy damage on Hamas. But the group continues to stage attacks in Gaza and to fire rockets into Israel. That could portend an open-ended war that could drag on for months or years.

The Hostages Forum, a grassroots group representing many hostage families, said it was time for a comprehensive deal.

“We know more than half are still alive and need immediate rehabilitation, while those who were murdered must be returned for proper burial,” it said. “We have no more time to waste. A hostage ceasefire agreement must be sealed now!”

The release of Palestinian prisoners in Israel

As part of the deal, Israel is expected to free hundreds of imprisoned Palestinians, including dozens who were convicted in bloody attacks.

Israel has a history of large-scale prisoner releases, and hundreds were freed in the November 2023 deal. But the sides have disagreed over the exact number and names of the prisoners to be freed. Hamas wants high-profile prisoners included. Israeli officials have ruled out the release of Marwan Barghouti, who tops Hamas' wish list.

Netanyahu's governing coalition includes hardliners who oppose such releases, with some even pledging to quit the government if too many concessions are made. They point to a 2011 prisoner release that included the former Hamas leader Yahya Sinwar, a mastermind of the Oct. 7 attacks who was killed by Israel in October.

The war has displaced an estimated 90% of Gaza’s 2.3 million people, according to UN estimates, with the hard-hit northern sector of the territory largely emptied of its prewar population.

During the first phase of the developing deal, Israel is expected to withdraw troops from Palestinian population centers and allow some of the displaced to return home. But the extent of the pullback and the number of people allowed to return must still be worked out, the officials say.