Emperor Xi? China's CPCC Passes its Third Resolution in 100 Years

Emperor Xi? The Communist Party’s Central Committee passed a resolution, for only the third time since its founding 100 years ago. President Xi has now been elevated to the same level as Mao Zedong and Deng Xiaoping. This certainly cements his position for a precedence-breaking third term in 2022. But is this good or bad? We have long held the view that economic success is not dependent on the type of political system, but rather the polices that are put in place to support private investment, FDI, and domestic consumption. There are relatively successful autocracies, such as Putin’s Russia, where the economy is stable and central bank fiercely independent. Then you have Erdogan’s Turkey, which seems to veer from crisis to crisis. Democracies can suffer a similar fate, with South Africa and Argentina economic messes. So for China, the extension of President Xi’s rule will ensure continuity of policy, with an emphasis on ‘common prosperity’ and an oval shaped society, which is not necessarily a bad thing. That said, a little political opposition never hurts.