Newsflash – Premier confirms our advance report on the Third Plenum

As predicted in our recent post, The Third Economic Plenum is Coming Soon, the Provinces are going to get a major haircut to reduce, and ultimately, remove them from commercial activity, other than (by 2017, probably) delivering services to the community – and that might not include national ones like health and education.

A major source of corruption starts at the local level, where officials exploit the power of the chop – the authority required to proceed.

It is also the source of many of the complaints about planning being approved without regard to the local people’s concerns.

It is difficult to see how this is going to be implemented and maintained without the Rule of Law being brought in at the local level.

This could be big, big news.

I discovered that the Premier had been quoted on this on the central government news site by Jianguang Shen of Mizuho Securities Asia Limited.

Thanks Dr Shen.

Categories: China growth, Economic policy, Econonomics, Foreign policy

3 replies

  1. It is so good to have your comments on Day 1 of the Third Plenum, Stephen. In Edinburgh, at the Confucius Institute for Scotland, we have had two amazing lectures recently: one by Lord Powell of Bayswater and the second by Professor Walter Shambaugh. Lord Powell spoke, from his great international business involvement, of China’s wide economic influence, while Professor Shambaugh spoke about the still limited impact of China on world governance. But is the Third Plenum really going to have as its focus simply internal reform? I imagine, though, that this in itself will have wide-ranging effects. What might these be?

  2. I do apologise: I meant, of course, Professor David Shambaugh of George Washington University. His recent book “China Goes Global: the Partial Power” is enormously stimulating.

  3. Two very experienced China hands. Your question about the global impact of the Third Plenum – China will, in my opinion, substantially increase foreign access within China, especially to its neighbours and other Asian nations with whom it has good relations. This means both trade and investment, and will exclude certain sectors with security aspects, but the general policy is to expand substantially in both directions.

    Beyond that the sheer impact of 7pc growth in an economy the size of China will provide global stimulus and the development of another stabilising currency – the rmb.

    The potential for the UK is especially positive if we can manage to focus on the positive needs of the relationship. That means finding new relationships at higher levels, which are essential to create the trust for attracting long-term investment in the U.K.

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