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China’s Xi Secures Unprecedented Third Term; Country Releases Delayed Data

China’s Xi Secures Unprecedented Third Term

Chinese leader Xi Jinping won an unprecedented third term as the leader of the world’s second-largest economy, breaking with recent convention meant to prevent China’s one-party rule from returning to dictatorship.

The reelection, which took place at the once-every-five-years People’s Congress, has turned China’s most powerful man into an even more powerful man. Xi was able to mold China’s most powerful body, the Politburo Standing Committee, to his design at the Congress.

The reformed Xi-centric government will mark a further departure from the Chinese Communist Party’s once market-oriented policy, which Xi has unraveled in favor of a social fabric which favors equality, state economic power, and international influence.

While the inner workings of China’s government might not rank high on the priorities of Americans, but here’s three things to consider for China’s next five years under Xi:

  • Chinese stocks fell on Monday after Xi secured reelection, with tech giants Baidu, Meituan, Alibaba and Tencent down more than 10%. Investors ‘risked off’ given concerns about Xi’s policies—which could be bad for growth or induce a crackdown on tech in China.
  • Earlier this year, U.S. intelligence warned that China was developing “the ability to seize Taiwan by 2027.” China’s highest desire is to take the country, one of the most advanced and strategically important in the rule, peacefully. However, U.S. President Biden says that the U.S. will defend Taiwan — and its precious reserve of semiconductor equipment. This week, a U.S. Navy chief warned that China could test its odds far before then — invading before 2024. Xi would certainly be orchestrating such an invasion during his five-year term.
  • China delayed the release of certain economic data during the People’s Congress, but eventually released it on Sunday evening — it showed that China’s GDP, industrial production, and balance of trade advanced significantly YoY. It’s one indication that China is coming out of its COVID shell, but Xi could absolutely affect this data if it means — in his view — advancing the common man in China.

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