According to new flow the ruling Chinese Communist Party will move to allow President Xi Jinping to stay in power ad infinitum.
At next month’s annual session, the country's parliament the National People Congress is projected to pass the proposed amendment. This act will shift the 1982 constitution, which limited the President’s term to two five-year terms in office. The government of China holds no competitive elections for leadership positions and body responsible for decision on Presidential term and constitutional amendments generally rubberstamps the party’s agenda. While limiting personal freedom and increasing the likelihood of authoritarian state cannot be a positive for humanity. However, safeguarding some degree of political stability provides comfort for investors.
President Xi Jinping extending his rule doesn’t come without political risk. Centralising power makes Xi solely responsible for results. However, limited red tape means he can focus on ballooning public debt, nonexistent welfare systems, rebalancing from export to consumer-led growth, and geopolitical diplomacy.
Core to your investment story based partially on China’s protectionist behaviour around key domestic companies. Consolidation of power by President Xi Jinping supports this theme. Elsewhere, US President Trump is expected to slap global tariffs on US steel and aluminium imports sometime this week. While affecting other nations China will be impacted. Some would say China is Trump's primary target. This shotgun trade policy is unlikely to be well received by an all-powerful Xi.
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