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David Bandurski, co-director of the China Media Project, discusses recent content on Chinese social media that revisited the thoughts of Deng Xiaoping, the former Chinese president who initiated China’s reform era. One of Deng’s political legacies was abolishing the lifelong tenure system for certain leaders within the Chinese government. According to Bandurski, discussions regarding Deng’s legacy were viewed as suggestions against the current Chinese president, Xi Jinping, who attempted to introduce a constitutional amendment to extend his own tenure in early 2018.
Why does this matter? Being the world’s second largest economy, China needs an appropriate domestic environment to further realize its growth potentials. The political ecosystem of China is highly vulnerable to changes in governmental practices, so it’s also something investors should consider before making judgments regarding China’s overall development outlook.
(The commentary contained in the above article does not constitute an offer or a solicitation, or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.)