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.



Netanyahu Faces Pressure to End Fighting in Gaza after Killing of Sinwar

Israel's Prime Minister Benjamin Netanyahu addresses the 79th United Nations General Assembly at UN headquarters in New York, US, September 27, 2024. (Reuters)
Israel's Prime Minister Benjamin Netanyahu addresses the 79th United Nations General Assembly at UN headquarters in New York, US, September 27, 2024. (Reuters)
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Netanyahu Faces Pressure to End Fighting in Gaza after Killing of Sinwar

Israel's Prime Minister Benjamin Netanyahu addresses the 79th United Nations General Assembly at UN headquarters in New York, US, September 27, 2024. (Reuters)
Israel's Prime Minister Benjamin Netanyahu addresses the 79th United Nations General Assembly at UN headquarters in New York, US, September 27, 2024. (Reuters)

The killing of Israel's most wanted enemy Yahya Sinwar has been hailed as vindication for Prime Minister Benjamin Netanyahu, but in a country weary after a year of war it also raises pressure on him to end the fighting and save the hostages still in Gaza.

Netanyahu himself described Sinwar's death as "the beginning of the end" to a conflict that has spread to Lebanon and Yemen, and said it could end if Hamas lays down its arms and return the 101 Israeli and foreign hostages held in Gaza.

With Sinwar joining a growing list of Palestinian and Lebanese militant leaders killed by Israel over recent months, the fear that a deal would reward the architect of the Hamas-led Oct. 7 attacks on Israel has gone.

"I think what we have now is an opportunity to use this moment in Gaza to close the front in Gaza," said Shira Efron, Senior Director of Policy Research at the pro-Israel Diane and Guilford Glazer Foundation.

"I mean, you need to remember that this goes into the kishka (the guts) of Israeli society, they've avenged the mastermind Sinwar," she said.

Yet it remains unclear how Hamas will respond to the death of their leader, filmed by an Israeli drone sitting badly wounded in a ruined building in Gaza before his body was recovered and taken to Israel for tests that confirmed his identity.

On Friday, the deputy head of Hamas Khalil Al-Hayya said Israeli hostages would not be returned until Israeli "aggression" ended and its forces withdrew.

Some of Netanyahu's hardline political allies, including his Finance Minister Bezalel Smotrich, said Israel should not stop before the "complete surrender" of Hamas.

But with the White House talking about a potential "inflection point" in the war, even many supporters of Israel's hitherto uncompromising approach said there was an opportunity to end the fighting.

"I think Netanyahu said the right thing last night. Give us the hostages and - when everyone, the hostages, will return - we'll leave," said Erez Goldman, a Jerusalem resident, as he absorbed the news the following day.

A significant section of Israeli opinion, including Netanyahu, has always maintained that the only way to achieve peace is by inflicting military defeats on their enemies, even if that comes at the cost of upsetting their allies.

Sinwar's death was seen by many as vindication of Israel's refusal to bow to international pressure earlier this year not to send ground troops into the city of Rafah, which was at the time the refuge for more than a million Palestinians displaced by the fighting.

"This is the first thing that came to mind when Sinwar was taken out in Rafah," one senior official said on Friday.

Netanyahu has resisted pressure for months from families of the hostages and from world leaders, including US President Joe Biden, to agree a ceasefire deal in Gaza. There were more such calls on Friday.

'OFF-RAMP'

Netanyahu's political fortunes, at rock-bottom last year in the aftermath of the bloodiest day in Israel's history, have revived steadily since, particularly as a series of militant leaders have been assassinated.

Mohammed Deif, Hamas' longstanding military commander, was killed in Gaza in July and in the same month, the movement's political leader Ismail Haniyeh was assassinated in Tehran.

Two months later Hezbollah leader Hassan Nasrallah was killed in Beirut, one of a string of leaders from the Iranian-backed group killed in a wave of Israeli airstrikes.

The addition of Sinwar to the list could give Netanyahu a potential "off-ramp" from Gaza, said Carmiel Arbit, non-resident senior fellow at the Atlantic Council.

"But Sinwar's death alone does not guarantee the circumstances necessary for Netanyahu to declare an end to the war as so many hope," she said.

Hostage families feel that after ceasefire talks apparently ran into the sand weeks ago, there is no time to waste. "It's an opportunity that we might not have again," said Daniel Lifshitz, whose grandfather Oded Lifshitz is still held in Gaza.

Much will depend on who succeeds Sinwar, whose death in combat was hailed by many Palestinians as a heroic act of defiance against Israel that should inspire further resistance.

Israel has said it must maintain security control over Gaza when combat operations end. But it has otherwise not revealed any detailed ideas for running the enclave beyond rejecting any role for Hamas or the Palestinian Authority.

After a year of war, the enclave is in ruins, with more than 42,000 Palestinians dead and most of the population displaced. Reconstruction will take years, requiring billions of dollars and heavy international support.

On the Israeli side, after Hamas-led gunmen stormed into Israel on Oct 7, 2023, killing 1,200 people and taking 251 hostages, few are willing to trust Hamas even if Sinwar is gone.

But even the chairperson of Kibbutz Be'eri, a community close to the Gaza Strip that lost one in 10 of its population on Oct 7, said the chance offered by Sinwar's death should be taken.

"There is an opportunity," said Amit Solvi. "And Israel has to take this opportunity in both hands. And evolve that into a diplomatic agreement."