China Promises Economic Reforms As Political Transition Begins
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China’s ruling party has restated its commitment to economic reforms and development with outgoing President Hu Jintao promising continuity as a new generation of anointed successors prepare for a leadership takeover.
Speaking at a key congress at the Great Hall of the People, Hu emphasised the country’s tremendous growth in the last three decades which has raised China to become the world’s second largest economy and lifted millions of Chinese out of poverty.
China’s ruling party has restated its commitment to economic reforms and development with outgoing President Hu Jintao promising continuity as a new generation of anointed successors prepare for a leadership takeover.
Speaking at a key congress at the Great Hall of the People, Hu emphasised the country’s tremendous growth in the last three decades which has raised China to become the world’s second largest economy and lifted millions of Chinese out of poverty.
During Hu’s decade in power, China’s economy averaged 10 percent in annual growth but its economy has since become too reliant on government-led investment and state-owned companies.
Highlighting the priorities of the ruling party, Hu promised to speed up the country’s financial reforms and open its doors to greater foreign investment.
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Addressing more than 2,000 delegates, Hu also set forward twin economic goals: On the basis of rebalancing China’s economy and creating more “sustainable and coordinated” development, Hu said China should aim to double its 2010 GDP by the end of the decade as well as double per capita income – for both urban and rural residents – by 2020.
Local state news agencies noted it was the first time China’s government had issued a goal for individual income. Rising inequality is a growing problem in China, which is home to nearly a million millionaires, but has more than 150 million citizens living on $1 per day.
Against a backdrop of growing social unrest, public anger at graft and a widening equality gap, Hu said “there is still much room for improvement and there are a lot of difficulties and problems ahead.”
Warning that China is facing a period of major change and “complicated domestic and internal circumstances”, Hu said the “serious challenge” of corruption must be tacked.
He said:
[quote] If we fail to handle this issue (corruption) well, it could prove fatal to the party, and even cause the collapse of the party and the fall of the state. [/quote]
Anyone who broke the law would be brought to justice, “whoever they are and whatever power or official positions they have”, he said. “We must never let words act in place of the law or (personal) power replace the law; nor will we allow the ignoring of the law for personal benefit,” he added.
