China: New leadership points to continuation, but no successor for Xi Jinping – Danske Bank

Chief Analyst, Allan von Mehren at Danske Bank notes that China has yesterday morning presented its new leadership in the Standing Committee (SC) of the Politburo and the line-up was as expected following the news reports.

Key Quotes

“The new SC points to continuation as the number of members is unchanged at seven and the five new members represent different factions of the Communist Party. The ‘7 up, 8 down’ informal rule was also respected. Hence, Xi Jinping did not aim for a strengthening of power in the SC. However, the new SC has no successor to Xi Jinping as President in 2022, which will add to speculation that he may stay on after his second term. By striking a balance on power and keeping to informal rules, it may also increase party support for Xi Jinping staying on after 2022. But only time will tell.” 

“With the Party Congress now behind him and a team Xi Jinping has been forming, we believe focus will turn to a further reform push in 2018.”