2012-03-19

Liberals aim to unleash new wave of reform

The liberal/reform faction in the Chinese government is stepping up their rhetoric. Aside from the attack on the conservatives/leftists, they also say that reform is urgently needed.
Leftist social critic finds microblog blocked
Major leftist websites Utopia, at wyzxsx.com, Redchinacn.com, Maoflag.net and others have been inaccessible for several days. They were apparently taken offline after Wen criticised conservatives last week.

These sites had been rallying behind Bo and his so-called Chongqing model of development – a combination of equal growth, conservative ideological control and a ruthless crackdown on organised crime with little regard to due process.

Political science professor Mao Shoulong of Renmin University said the targeting of leftist academics was borne out of Beijing's need for ''a unified ideology'' ahead of the 18th party congress in autumn. ''It's also a way of showing support for the new Chongqing leadership [and avoiding] any further instability there,'' he said.
It may shock outside observers to see the left being censored, but such is the new China. Mao is history and this leadership transition may mark the boldest step forward since the late 1970s, and at least the early 1990s in terms of economic reform.

Li Keqiang vows changes to China's economic model
China cannot delay tough economic reforms, Vice-Premier Li Keqiang said yesterday.

His remarks underscored the top leadership's push for market-based change after the sacking last week of Chongqing party boss Bo Xilai , who pushed for a bigger state role in the economy.
Click the Li Keqiang tag to see previous articles. He has been pushing for major tax reform and policies aimed at creating a large middle class.
"China has reached a crucial period in changing its economic model and [change] cannot be delayed. Reforms have entered a tough stage," Li said, echoing comments made by Wen last week.

"We will make policies more targeted, flexible and forward-looking to maintain relatively fast economic growth and keep price levels basically stable," Li said in a speech at an economic policy conference attended by top Chinese officials, the head of the International Monetary Fund and dozens of foreign business leaders.

He said Beijing would "deepen reforms on taxes, the financial sector, prices and income distribution and seek breakthroughs in key areas to let market forces play a bigger role in resource allocation".
Other liberals are also looking to take on new leadership roles in the coming year. One of those was Bo Xilai's biggest critic, Guangdong party secretary Wang Yang. He is briefly profiled along with other rising leaders in the SCMP article, Glimpse of those waiting in the wings.
Wang is also a media icon for the new generation of leaders. His liberal and transparent approach in quelling social unrest such as village land disputes or factory strikes is a sharp contrast to conservative officials, who tend to react to unrest with violence or suppression.

Wang has stepped up his push for a smarter, leaner form of government in what is being seen as an attempt to bolster his support among the liberal camp.

"We must hasten the development of small government and a great society," Wang told a provincial social development meeting.
The coming years will be critical for Chinese development. Besides dealing with the bad debts in the banking system, negative social mood and an economic model well past its expiration date, the Chinese also must contend with demographic changes. In 2011, Nicolas Eberstadt covered the demographic situation in China in The demographic risks to China’s long-term economic outlook

In simplest terms, China's demographic dividend is coming to an end and productivity growth will be needed to generate GDP growth.

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