left corner left corner
China Daily Website

US media: A turning point

Updated: 2012-11-08 09:51
( China Daily)

The CPC starts its 18th National Congress on Nov 8 and is expected to unveil a new line-up of leaders at its conclusion. The once-in-a-decade leadership transition will influence the world, says an article on a US website cnbc.com. Excerpts:

China is poised to usher in a new generation of leaders that will rule the world's second largest economy for the next 10 years. The once-in-a-decade political transition is significant.

China's emergence as an economic powerhouse means that what happens in its domestic politics has the potential to shape economic policy, which in turn has global implications.

"The political transition is important not only because of China's growing presence in the world economy, but also because of the power the Chinese government has to shape its economy," said Justin Harper, Market Strategist at IG Markets in Singapore.

Say in the US or the UK, you get a change of leaders, broadly speaking that does not tend to have a big impact on the economy. That's not the case in China, where the government wields so much power that a change in leadership really can have a big impact on the direction of the economy.

The focus of the markets is on what action the new leadership will take on the economy, which is expected to grow this year at around 7.5 percent - a level that would mark the slowest annual pace in 13 years and a sharp slowdown from the double-digit growth rates China has enjoyed in recent years.

Hopes are high, however, that once the political transition is over, Beijing will take more measures to ensure economic growth.