China’s Communist Party wrapped up its twice-a-decade congress on Saturday, approving amendments cementing Xi Jinping’s iron grip on the party and revealing a new Central Committee missing two key officials who had no close ties to the leader.
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Xi is poised to clinch his third five-year stint in charge, a mandate that would secure his place as the country’s most powerful ruler since founding leader Mao Zedong.
The party’s new 205-member Central Committee did not include outgoing Premier Li Keqiang or former Guangdong party boss Wang Yang, who could be a potential premier.
Xi opened the week-long, twice-a-decade session a week ago with a speech touting China’s fight against COVID-19, the party’s safeguarding of national security, maintaining social stability, and taking control of the situation in Hong Kong, which saw anti-government protests in 2019.
Xi’s priorities
- The priority is the creation of “world-class armed forces” in China by 2027. As of May 2022, China ranks 3rd in terms of military power out of 142 countries, according to the GFP index.
- China has no plans to abandon forceful methods and will immediately “bite” if someone touches Taiwan. Separatist sentiments will always meet harsh military actions.
- The creation of the ecosystem for the energy supply chains and food chains, related to cooperation with Russia, is also a high priority.
- Xi plans to support the private sector somehow. People and businesses might get some help.
- The “socialist democracy” will be strengthened with a focus on Chinese medicine and the birth rate.
- The tolerance for COVID will continue to be zero.
America vs China
The 8th of November is special. United States Congress elections. Republicans have all the chances to win. 2024 is very likely to be a winning year for someone like Trump. At the same time, “someone like Trump” will stir up a hardcore confrontation with China.
As a result of the battle of the two titans, the volatility of the stock markets will increase. Long-term investment looks strategically complicated because everything is changing too quickly. There will still be a lot of force majeure events – they always happen during significant political and economic changes.
Long-term trading may be risky because of a highly unpredictable outlook. And with intraday trading, you can profit from high volatility alone.
