China’s New Leadership 2012

Xi Jinping replaces Hu Jintao as head of the Chinese Communist Party and the nation’s military

Li Keqiang will replace Premier Wen Jiabao at a meeting in March.

After the 2012 leadership transition at the 18th Party Congress, the Wikipedia link contains useful information, which should be verified using other sources, the Fifth Generation will assume power. The Wiki link provides an overview of the notion of generations in relation to Chinese leadership and the information on the Fifth Generation includes mention of the Princelings or Crown Prince Party.

Noteworthy items:
Hu addresses income differentials between classes and between coast and interior, town and countryside:

China’s per capita income has been on the rise for some time now but residents are still unhappy. The country has a high Gini coefficient, a measure of income inequality. The Gini coefficient is measured on a scale of 0 to 1 where zero expresses perfect equality and 1 expresses perfect inequality. The UN has said 0.4 is the level beyond which there is a risk of social unrest and China is reported to have a Gini coefficient above that critical level.
The government has for the eleventh straight year refused to publish the Gini coefficient because it claims that data on high-income groups is incomplete. But Caixin Online reports that it is because the government wants to mask the wealth gap in the country, another cause of unrest among the public.
In delivering his speech Hu acknowledged the income inequality problem and spent some time talking about boosting the incomes of the lower-income groups. From Xinhua:
China should deepen reform of the wage and salary system in enterprises, government bodies and public institutions, promote collective bargaining on wages in enterprises, and protect income earned through work, and increase proprietary individual income through multiple channels.
“We should improve the way in which income is distributed, protect lawful income, increase the income of low-income groups, adjust excessively high income, and prohibit illicit income,” he said.

This quote is taken from an article from businessinsider.com.

In addition:

“The Chinese yan, or renminbi or RMB, has increasingly become the reference currency in Asia,” writes Arvind Subramanian and Martin Kessler in the Financial Times, as referred by theChina daily.

“The renminbi bloc has now displaced the dollar bloc in Asia. The symbolism and its historic significance cannot be understated because East Asia, despite physical distance, has always been part of the dollar backyard,” the experts said.”

(Tip of the hat to Peter M. Johansen in the Norwegian newspaper Klassekampen for the background information this post was built on.)

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