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.



Report: Israel Faces Possible Shortage of Interceptor Missiles

An Arrow II missile interceptor is displayed in front of journalists at an Israeli air defense command in the Palmahim military base south of Tel Aviv May 12, 2011. (Reuters)
An Arrow II missile interceptor is displayed in front of journalists at an Israeli air defense command in the Palmahim military base south of Tel Aviv May 12, 2011. (Reuters)
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Report: Israel Faces Possible Shortage of Interceptor Missiles

An Arrow II missile interceptor is displayed in front of journalists at an Israeli air defense command in the Palmahim military base south of Tel Aviv May 12, 2011. (Reuters)
An Arrow II missile interceptor is displayed in front of journalists at an Israeli air defense command in the Palmahim military base south of Tel Aviv May 12, 2011. (Reuters)

Israel is encountering a potential shortage of rocket and missile interceptors in its air defenses, reports revealed on Tuesday a day after the country’s Defense Minister Yoav Gallant admitted Israel needs US support in air armament.

The Yedioth Ahronoth newspaper said that during the security review presented to Israeli ministers Monday, Gallant was asked about armaments.

He replied that there was a large gap when he entered the Defense Ministry, which he instructed to be filled before the start of the war.

Gallant said, “We are still dependent in air armaments and American planes,” but he clarified that “we are working with all our might to promote blue-white production and the development of independence” on the issue of armaments.

Gallant’s comments were confirmed by the London-based Financial Times, which on Tuesday said that Israel faces a severe shortage of interceptor missiles, detailing how the US is rushing to help close the gaps.

According to the report, the Pentagon on Sunday announced the deployment of the THAAD system that will arrive in Israel, in preparation for the expected attack in Iran, which could lead to further regional escalation.

“Israel’s munitions issue is serious,” Dana Stroll, a former senior official at the US Department of Defense, responsible for the Middle East, explained to the newspaper.

“If Iran responds to an Israel attack [with a massive air strike campaign], and Hezbollah joins in too, Israel air defenses will be stretched,” she said, adding that US stockpiles are not limitless. “The US can’t continue supplying Ukraine and Israel at the same pace. We are reaching a tipping point,” she added.

Replenishing stocks

Boaz Levy, chief executive of Israel Aerospace Industries, a state-owned company which makes the Arrow interceptors used to shoot down ballistic missiles, told the newspaper he is running triple shifts to keep production lines running.

“Some of our lines are working 24 hours, seven days a week. Our goal is to meet all our obligations,” Levy said, adding that the time required to produce interceptor missiles is “not a matter of days”.

While Israel does not disclose the size of its stockpiles, he added: “It is no secret that we need to replenish stocks.”

The British newspaper explained that until this week, Israel's three-tiered air defense systems have succeeded in intercepting most of the UAVs and missiles fired by Iran and its proxies at the country.

The Iron Dome system intercepted short-range rockets and UAVs fired by Hamas from Gaza, while the David Slingshot intercepted heavier rockets fired from Lebanon, and the Arrow system stopped ballistic missiles from Iran.

During the Iranian attack in April, according to the Israeli army, a 99% interception rate was achieved against the barrage, which included 170 drones, 30 cruise missiles and 120 ballistic missiles.

Israel reportedly had less success in repelling the second barrage, that took place at the beginning of the month, which included more from 180 ballistic missiles.

Intelligence sources told the newspaper that nearly 30 missiles hit the Nevatim Airbase in southern Israel near Be'er Sheva.

200 missiles

The FT report stirred heated debate in Israel. Brigadier General Zvika Chaimovitz, former commander of the air defense system, told Ynet on Tuesday: “The THAAD system is a significant force component and I don't want to compare it with the Arrow system, but in the end, you add dozens more interceptors.”

“It is a significant force that joins our forces, and we have seen scenarios of 200 missiles. It is assumed that if the conflict with Iran continues, we are expected to see more here.”

“The US is a great power. When you look at capabilities, it's not a numbers game. In the end it's a combination of defense and attack,” he remarked.

Yedioth Ahronoth commentator Ron Ben Yishai pointed out in a recent piece that the agreement being formed with the US to place THAAD in Israel is as much a result of American coercion as it is of Israeli necessity.

“The Israeli army’s need is clear: It needs the addition of American interceptor missiles and launchers to deal with the hundreds of missiles that the Iranians may launch, if and when Israel responds to the attack against it on October 1,” he said.

In this case, the quantities and numbers speak for themselves, noted Ben Yishai. “The more missiles are launched in one or two small volleys in order to saturate the defense systems - the more launchers, interceptor missiles and radars are needed,” he continued.

Yair Katz, the head of the workers union at Israel Aircraft Industries, dismissed the claims, stating that “The Financial Times headline is wrong. Israel has enough interceptors to maintain a war on multiple fronts.”