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China all set for once-in-a-decade leadership change

BEIJING, NOV 09 - President Hu Jintao urged his colleagues in China's ruling Communist Party on Thursday to combat official corruption that has stoked public anger, but also told them to maintain firm political control, as he prepared to hand over power after a decade in office.
Hu opened a weeklong party congress with a speech that cited many of the challenges China faces-a rich-poor gap, environmentally ruinous growth and imbalanced development between prosperous cities and a struggling countryside. Yet he offered little fresh thinking to address a flagging economy and meet demands from within the party and the public for more open government.
The congress at Beijing's Great Hall of the People will usher in a once-in-a-decade leadership change in the world's second-largest economy. Despite the high profile of the event and the focus on sensitive issues like reform and graft, the comments were not considered unusual since they mainly reinforced existing ideas and themes.
Instead, the 90-minute, wide-ranging speech gave Hu a chance to define his legacy and lay down policy markers for his successor, Vice-president Xi Jinping, while marshaling his clout for the main event at the congress: the backroom politicking to install allies in the collective leadership Xi will lead.
Always an occasion for divisive bargaining, the leadership transition has been fraught, buffeted by scandal and by the sinking economy that has fed public anger over a party increasingly seen as consumed by power and corruption.
In recent months, one top leader, Bo Xilai, has been purged after his wife murdered a British businessman; a top aide to Hu was sidelined after his son crashed a Ferrari he shouldn't have been able to afford and foreign media reported that relatives of Xi and outgoing Premier Wen Jiabao had traded on their proximity to power to amass vast fortunes.
Hu sounded the alarm on rampant graft, calling on party members to be ethical and rein in their family members.
"Nobody is above the law," Hu said to the applause of the 2,309 delegates and invited guests gathered in the Great Hall of the People, with Xi and other party notables on the dais behind him.
Hu mentioned corruption and efforts to fight it 16 times and said China needed more effective laws and rules to eliminate conflicts of interest, though he did not propose asset disclosures or other detailed measures that reformers have urged.
Hu also drew the line on political reform, a catchphrase for everything from greater transparency to democracy, insisting that the party and its leading position would remain firmly intact.
The congress also comes during a crisis with Japan over disputed islands, and though Hu did not mention it by name, he said China faced complicated security threats.
Stakes have seemed higher still this year for the party and the public, with China seemingly facing a turning point. The old model of heavily state-directed growth that lifted hundreds of millions out of poverty and made China an economic powerhouse is faltering in the face of rising domestic debt and a weak global economy. Meanwhile, the government has to contend with the public's continued expectations of higher living standards and for less corruption and greater accountability, if not outright democracy.
After the delegates stood for the national anthem, the congress paused for a moment of silence to remember Mao Zedong and other revolutionary leaders. A golden hammer and sickle, the party's symbol, hung on the wall behind Hu. On the rostrum, dressed in a Mao jacket, sat 95-year-old Song Ping, a veteran revolutionary and party insider. Hu's predecessor, Jiang Zemin, sat in the center, symbolic of his vital position in the bargaining over the next leadership.
Hu's speech is also a consensus document, the result of more than a year of drafting and redrafting by a committee. While laying out Hu's legacy, its vagueness might appear to give latitude to Xi to branch out in new areas. But it also seemed to turn aside calls in recent months from retired party notables, commentators and government think tanks to embark on a meaningful opening of the political system and shift resources away from cosseted and wealthy state enterprises.
His report also stressed that economic growth remained the chief solution to China's problems.
Hu set a target for doubling the size of the country's economy and per capita income from 2010 to 2020, implying an 8 percent annual growth rate that economists say may saddle China with higher debt and more waste and prevent a rebalancing away from state companies to private companies and households.