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| On Way Out, China’s Leader Offers Support to Status Quo | |
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| BEIJING — Capping 10 careful years at the helm of the Communist Party, China’s top leader is stepping into history with a series of rear-guard actions. | BEIJING — Capping 10 careful years at the helm of the Communist Party, China’s top leader is stepping into history with a series of rear-guard actions. |
| The leader, Hu Jintao, 69, is scheduled to step down as the party’s general secretary next week, handing over much of his power to his designated successor, Xi Jinping. But over the past few months, he has made it clear that he has little interest in the bold changes to the status quo that many Chinese now see as long overdue. | The leader, Hu Jintao, 69, is scheduled to step down as the party’s general secretary next week, handing over much of his power to his designated successor, Xi Jinping. But over the past few months, he has made it clear that he has little interest in the bold changes to the status quo that many Chinese now see as long overdue. |
| “He’s worried about how history will view him,” said Qian Gang, who works with the China Media Project at the University of Hong Kong. “On the whole, he is against reform.” | “He’s worried about how history will view him,” said Qian Gang, who works with the China Media Project at the University of Hong Kong. “On the whole, he is against reform.” |
| Mr. Hu made a key speech in July that dashed reformers’ hopes for measures to resuscitate the faltering economy and release social pressures by opening the political system. On Thursday, he wrote himself a glowing eulogy: a 100-minute address to the 18th Party Congress that was also meant to serve as a blueprint for Mr. Xi’s term in office. | Mr. Hu made a key speech in July that dashed reformers’ hopes for measures to resuscitate the faltering economy and release social pressures by opening the political system. On Thursday, he wrote himself a glowing eulogy: a 100-minute address to the 18th Party Congress that was also meant to serve as a blueprint for Mr. Xi’s term in office. |
| In a voluminous, 64-page formal document issued at the party congress, Mr. Hu nodded to almost every manner of change — economic, social, political and environmental — and he opened the door to some potentially important measures to limit the dominance of the state in the economy. But he balanced those with warnings to guard against a rise in unrest, a striking admission for a man whose signature slogan was to turn China into a “harmonious society.” | In a voluminous, 64-page formal document issued at the party congress, Mr. Hu nodded to almost every manner of change — economic, social, political and environmental — and he opened the door to some potentially important measures to limit the dominance of the state in the economy. But he balanced those with warnings to guard against a rise in unrest, a striking admission for a man whose signature slogan was to turn China into a “harmonious society.” |
| “Social contradictions have clearly increased,” Mr. Hu wrote in the document. “There are many problems concerning the public’s immediate interests in education, employment, social security, health care, housing, the environment, food and drug safety, workplace safety, public security, and law enforcement.” | “Social contradictions have clearly increased,” Mr. Hu wrote in the document. “There are many problems concerning the public’s immediate interests in education, employment, social security, health care, housing, the environment, food and drug safety, workplace safety, public security, and law enforcement.” |
| Mr. Hu also lauded his own contribution to Communist Party ideology: “scientific development.” Most of his predecessors have had their own ideologies enshrined as guiding state doctrines. His repetition in his speech of the phrase, which means that the party should be pragmatic and follow policies that are demonstrably effective, implied that he, too, would be so honored. | Mr. Hu also lauded his own contribution to Communist Party ideology: “scientific development.” Most of his predecessors have had their own ideologies enshrined as guiding state doctrines. His repetition in his speech of the phrase, which means that the party should be pragmatic and follow policies that are demonstrably effective, implied that he, too, would be so honored. |
| The result was a speech that, while ostensibly supporting a new agenda, actually represented an attempt to block much of it. | The result was a speech that, while ostensibly supporting a new agenda, actually represented an attempt to block much of it. |
| According to Mr. Qian, a leading expert on textual analysis of Chinese leaders’ speeches, Mr. Hu’s speech hit on almost every antichange phrase used by Chinese Communist leaders. | According to Mr. Qian, a leading expert on textual analysis of Chinese leaders’ speeches, Mr. Hu’s speech hit on almost every antichange phrase used by Chinese Communist leaders. |
| He referred to Communist China’s founder three times with the phrase “Mao Zedong Thought,” and he said that the party must “resolutely not follow Western political systems,” something not mentioned at the last congress five years ago. | He referred to Communist China’s founder three times with the phrase “Mao Zedong Thought,” and he said that the party must “resolutely not follow Western political systems,” something not mentioned at the last congress five years ago. |
| “They don’t say these terms lightly,” Mr. Qian said. “When they mention it, it matters.” | “They don’t say these terms lightly,” Mr. Qian said. “When they mention it, it matters.” |
| Mr. Hu also coined a new term, pledging that the party will not follow the “wicked way” of changing the party’s course. | Mr. Hu also coined a new term, pledging that the party will not follow the “wicked way” of changing the party’s course. |
| Mr. Hu’s speech is thought to have been drawn up in cooperation with his successor, Mr. Xi. While Mr. Xi has been consulting with liberal members of China’s intelligentsia, he either did not oppose Mr. Hu’s direction or was not able to change it. | Mr. Hu’s speech is thought to have been drawn up in cooperation with his successor, Mr. Xi. While Mr. Xi has been consulting with liberal members of China’s intelligentsia, he either did not oppose Mr. Hu’s direction or was not able to change it. |
| That is important, observers say, because Mr. Xi will not exercise unrestrained power when he takes over. Besides the other half-dozen members on the Standing Committee of the party’s Politburo, he will also have to listen to the advice of Mr. Hu; Mr. Hu’s own predecessor, Jiang Zemin; and an estimated 20 other “senior leaders.” As if to emphasize their role, these men were seated on the dais next to Mr. Hu. Many of them are in their 70s and 80s and have exercised power for decades. | That is important, observers say, because Mr. Xi will not exercise unrestrained power when he takes over. Besides the other half-dozen members on the Standing Committee of the party’s Politburo, he will also have to listen to the advice of Mr. Hu; Mr. Hu’s own predecessor, Jiang Zemin; and an estimated 20 other “senior leaders.” As if to emphasize their role, these men were seated on the dais next to Mr. Hu. Many of them are in their 70s and 80s and have exercised power for decades. |
| “Xi Jinping certainly won’t be a Gorbachev,” said Yao Jianfu, a former official and researcher who closely follows Chinese politics and advocates democratic change. “Every aspect of reform has an important precondition — that the Communist Party remains in charge.” | “Xi Jinping certainly won’t be a Gorbachev,” said Yao Jianfu, a former official and researcher who closely follows Chinese politics and advocates democratic change. “Every aspect of reform has an important precondition — that the Communist Party remains in charge.” |
| Even though Mr. Hu’s speech was broadcast live on national television and on screens in Beijing subway cars, gauging popular opinion was difficult. | Even though Mr. Hu’s speech was broadcast live on national television and on screens in Beijing subway cars, gauging popular opinion was difficult. |
| Microbloggers, who mostly live in cities and are fairly well educated, at times cast scorn on the talk. One blogger listed the Marxist terminology that Mr. Hu used and wrote simply “madness.” Others used laughing emoticons, while some delved closely into the speech for clues to new policies. Some noted his fleeting mention of China’s unpopular single-child policy. | Microbloggers, who mostly live in cities and are fairly well educated, at times cast scorn on the talk. One blogger listed the Marxist terminology that Mr. Hu used and wrote simply “madness.” Others used laughing emoticons, while some delved closely into the speech for clues to new policies. Some noted his fleeting mention of China’s unpopular single-child policy. |
| Mr. Hu’s tough language on social issues contrasted with his strong reaffirmation of the Communist Party’s commitment to the economic policy mantra of “reform and opening up,” a policy that has produced soaring trade and economic growth over the past three decades. | Mr. Hu’s tough language on social issues contrasted with his strong reaffirmation of the Communist Party’s commitment to the economic policy mantra of “reform and opening up,” a policy that has produced soaring trade and economic growth over the past three decades. |
| Many economists have begun to question, however, whether Mr. Hu’s tenure has amounted to a “lost decade” for refashioning China’s investment-driven economy into a broader, more stable system. State-owned enterprises have gradually strengthened their roles in the economy through a combination of monopoly power and access to cheap loans from state-owned banks. | Many economists have begun to question, however, whether Mr. Hu’s tenure has amounted to a “lost decade” for refashioning China’s investment-driven economy into a broader, more stable system. State-owned enterprises have gradually strengthened their roles in the economy through a combination of monopoly power and access to cheap loans from state-owned banks. |
| Mr. Hu offered some encouragement for changes along that front by calling for narrowing the government investment in state-owned enterprises to a few industries “that comprise the lifeline of the economy and are vital to national security.” It was one of the strongest hints to date that the government is mulling whether it should play less of a role in managing enterprises in many other industries. | Mr. Hu offered some encouragement for changes along that front by calling for narrowing the government investment in state-owned enterprises to a few industries “that comprise the lifeline of the economy and are vital to national security.” It was one of the strongest hints to date that the government is mulling whether it should play less of a role in managing enterprises in many other industries. |
| Mr. Hu also paid heed on Thursday to complaints from entrepreneurs that regulators, loan officers of state-owned banks, local zoning officials and other government representatives discriminate against them in favor of state-owned enterprises. | Mr. Hu also paid heed on Thursday to complaints from entrepreneurs that regulators, loan officers of state-owned banks, local zoning officials and other government representatives discriminate against them in favor of state-owned enterprises. |
| China must “ensure that economic entities under all forms of ownership have equal access to factors of production in accordance with the law, compete on a level playing field and are protected by the law as equals,” he said. | China must “ensure that economic entities under all forms of ownership have equal access to factors of production in accordance with the law, compete on a level playing field and are protected by the law as equals,” he said. |
| He also endorsed a series of other economic liberalization moves that have been discussed for years, although their progress has sometimes been slow during his tenure. | He also endorsed a series of other economic liberalization moves that have been discussed for years, although their progress has sometimes been slow during his tenure. |
| Mr. Hu endorsed making interest rates and the exchange rate of the renminbi more dependent on markets and less on government fiat. The People’s Bank of China, the central bank, has already begun doing this by gradually broadening the range of interest rates that banks can charge based on the credit worthiness of borrowers and by widening the daily range in which the currency can trade against the dollar. | Mr. Hu endorsed making interest rates and the exchange rate of the renminbi more dependent on markets and less on government fiat. The People’s Bank of China, the central bank, has already begun doing this by gradually broadening the range of interest rates that banks can charge based on the credit worthiness of borrowers and by widening the daily range in which the currency can trade against the dollar. |
| Another frequent complaint of foreign governments and foreign businesses, China’s lax enforcement of copyrights and patents, drew at least an acknowledgment from Mr. Hu, who promised greater protection of intellectual property as a way to foster innovation in China. | Another frequent complaint of foreign governments and foreign businesses, China’s lax enforcement of copyrights and patents, drew at least an acknowledgment from Mr. Hu, who promised greater protection of intellectual property as a way to foster innovation in China. |
| There was one perhaps unintentional sign at the party congress that China remains enthusiastic about foreign brands — at least if they are manufactured in China. | There was one perhaps unintentional sign at the party congress that China remains enthusiastic about foreign brands — at least if they are manufactured in China. |
| A special parking lot for officials on the north side of the Great Hall of the People, across the street from the walled residential compound where the country’s leaders live, was full of German, American and Japanese cars, with no sign of any Chinese models. | A special parking lot for officials on the north side of the Great Hall of the People, across the street from the walled residential compound where the country’s leaders live, was full of German, American and Japanese cars, with no sign of any Chinese models. |
| The lot held at least a dozen black Audi A8 sedans and several dark-blue Buick GL8 minivans — both are assembled in China — and even a white Toyota Highlander crossover utility vehicle. Sales of Japanese-brand models have plummeted about 40 percent in each of the past two months compared with a year ago after a territorial dispute between China and Japan in the East China Sea led to rioting and the destruction of around 100 Japanese-brand cars. | The lot held at least a dozen black Audi A8 sedans and several dark-blue Buick GL8 minivans — both are assembled in China — and even a white Toyota Highlander crossover utility vehicle. Sales of Japanese-brand models have plummeted about 40 percent in each of the past two months compared with a year ago after a territorial dispute between China and Japan in the East China Sea led to rioting and the destruction of around 100 Japanese-brand cars. |