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Speaker 1: Ten minutes here before the top of the hour, we

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Speaker 1: had the wrap up of the Communist Party Congress over

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Speaker 1: the weekend, and so much to talk about as regards that.

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Speaker 1: Joining us in our studios is Rebecca shown Wilkins Bloombery's

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Speaker 1: Government and Politics corresponded. So, Rebecca, a lot of cross

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Speaker 1: currents here. So you have some some really top economic officials,

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Speaker 1: the PBOC governor y Gong as well as other economic

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Speaker 1: leaders completely exiting the party leadership. Uh, and instead they're

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Speaker 1: replaced by really people more in the security area. I

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Speaker 1: suppose you can say science and technology also a big

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Speaker 1: part of that, and so that would suggest almost a

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Speaker 1: d emphasis on the economy. However, if President she wants

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Speaker 1: to achieve certain goals, he's going to have to stimulate

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Speaker 1: a lot in the next year, and that suggests that

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Speaker 1: maybe the economy will get used up. So I know

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Speaker 1: you've been looking at this very closely, UM, and you

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Speaker 1: probably note a million other interesting aspects to this. Um. Absolutely,

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Speaker 1: we did see quite a big sort of lifting of

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Speaker 1: the guard to some extent that was expected, But we

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Speaker 1: did see that season Pink's goals that he outlined. This

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Speaker 1: emphasis on security science education did show through in the

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Speaker 1: selection of the broader leadership um, so to speak, and

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Speaker 1: we have seen exits from these sort of key finance positions,

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Speaker 1: and it's accompanied, i think more broadly by this move

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Speaker 1: away from placing technocrats, particularly in that top leadership body,

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Speaker 1: the Politburo and the Politburo Standing Committee, with more of

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Speaker 1: his close allies. UM. What does it mean really for

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Speaker 1: trying to going forward in this relations with the risk

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Speaker 1: of the world though, because it's emergence on the world stage,

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Speaker 1: it's increasing prosperity. Can you really decouple that from China

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Speaker 1: opening to the worlds and is it going back into

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Speaker 1: its shell? Are we seeing some evidence of that? Well?

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Speaker 1: I think certainly China and see Jimping and his speeches

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Speaker 1: have tried to project an image of the country that

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Speaker 1: is in a way willing to take its rightful place

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Speaker 1: on the global stage and challenge the US hegemony. So

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Speaker 1: it's I think less signs that we see a China retreating,

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Speaker 1: but more that it's ready to take a strident and

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Speaker 1: quite a different and possibly antagonistic role in the world.

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Speaker 1: I think that, coupled with the fact that, for example,

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Speaker 1: you now have a standing committee, these are the top

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Speaker 1: leadership positions in China really full of seeds. In Ping's

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Speaker 1: close allies, there is increasing likelihood that there is likely

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Speaker 1: to be less diversity of views, less discussion, less pushed back.

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Speaker 1: These are really sort of the men who are there

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Speaker 1: to enforce seeds in Pings and implement seeds in Ping's

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Speaker 1: own agenda. The flip side of the argument, I suppose

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Speaker 1: would be it makes it easier now for Shi Jimping

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Speaker 1: too to introduce and to implement some new policies. And

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Speaker 1: that could be a positive as long as it's sort

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Speaker 1: of benign leadership that we see. Yes to some extent,

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Speaker 1: I think that's true. And and season Ping is taking

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Speaker 1: a firmer hand on the country, just as of course

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Speaker 1: he's about to steer it through the first economic downturn

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Speaker 1: since he took that top position um. And in some

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Speaker 1: ways we did see him preparing for this tighter this

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Speaker 1: sort of tighter period um, you know, encouraging the spirit

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Speaker 1: of frugality and so on, and we didn't see, which

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Speaker 1: we saw in T seventeen, the emphasis on this the

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Speaker 1: party's core mission of making people's lives better and making

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Speaker 1: people sort of seek happiness, which is what we saw

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Speaker 1: five years ago. So there does seem to be a

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Speaker 1: sort of nod to the fact that there is going

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Speaker 1: to be a tougher period ahead, saying that, you know,

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Speaker 1: we also have seen, as you say, figures like lu

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Speaker 1: Her exiting, these figures that typically have been the ones

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Speaker 1: that have sort of given market some confidence that there

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Speaker 1: is a steady hand looking after the economy at the

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Speaker 1: very very highest echelons. And that may be you know,

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Speaker 1: little bit of an an uncertain or worrying factor for

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Speaker 1: some investors. Of course, so the property crisis has impact

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Speaker 1: a lot of China's middle class. What can be done

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Speaker 1: to address that? Are we expecting any major policy shifts? Absolutely?

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Speaker 1: I think that is a really central point here, and

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Speaker 1: it speaks to this idea of the China Dream. I mean,

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Speaker 1: seeds in paying in twelve laid out this vision to

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Speaker 1: restore and provide prosperity and wealth for people, and and

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Speaker 1: that no longer looks to be the promise um when

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Speaker 1: especially when it comes to property. I mean, I think

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Speaker 1: the reality is, and we've had lots of excellent experts

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Speaker 1: on here saying that there just isn't very much that

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Speaker 1: the government can do. This is really now in the

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Speaker 1: hands of local government who will be expected to manage

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Speaker 1: the fallout of this, and you can see this reflected

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Speaker 1: and stimulus measures. You know, we've seen some loosening and

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Speaker 1: some amount of funds available at the central level, but

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Speaker 1: predominantly this has been about at local government levels, sort

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Speaker 1: of loosening up policies around home buying, and also clearly

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Speaker 1: they have been given the responsibility of making sure those

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Speaker 1: defaulted developers who stopped construction that they got local governments

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Speaker 1: with the one that have to kind of get that

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Speaker 1: ball moving again to try and prevent more of those

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Speaker 1: protests that we've seen over mortgage payments for undelivered homes.

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Speaker 1: We we often try to simplify things, particularly on the radio,

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Speaker 1: to make it easier for for people to understand. Um,

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Speaker 1: I want to make a statement and give you a

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Speaker 1: true or false on it, and then you can provide

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Speaker 1: the nuance to it. More common prosperity likely means more

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Speaker 1: socialist policy, communist policy, and less capitalism. True or false.

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Speaker 1: I'm gonna up for false, but not because I think

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Speaker 1: there's going to be less of the socialist motivation and ideology.

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Speaker 1: We have clearly increasingly seeing that governing policy. But I

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Speaker 1: think when it comes to common prosperity. In particular, there

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Speaker 1: has been somewhat of a misunderstanding of what pragmatically this

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Speaker 1: really looks like. It's important that we remember common process

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Speaker 1: verity was about the crackdown on the tech sector, the

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Speaker 1: crackdown on the real estate sector. It has not actually

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Speaker 1: done that much other than tink around the edges at

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Speaker 1: redistributing wealth for them, for the for the bulk of

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Speaker 1: sort of middle class people. And in fact, when you

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Speaker 1: look at the property that it doesn't it stunt the

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Speaker 1: animal spirits of particularly people trying to develop startup companies.

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Speaker 1: I think that's certainly true. It has certainly targeted the

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Speaker 1: private sector, and to certain to that extent, I think

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Speaker 1: that you know, socialist ideology, if you want to put

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Speaker 1: it that way, will increasingly mean that the private sector,

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Speaker 1: including those that you mentioned, will will suffer. And we

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Speaker 1: have seen sort of the rise of state companies, and

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Speaker 1: many investors also expecting there to be more state companies dominating.

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Speaker 1: One analyst sort of refer to this as the the

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Speaker 1: age of rust, which I thought was a great expression

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Speaker 1: for that it really points to just how difficult it

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Speaker 1: is to create that kind of innovation that cd ping

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Speaker 1: is trying to go for um when you don't have

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Speaker 1: a very thriving, you know, animal spirits driven private market,

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Speaker 1: as you say, just very quickly, we also saw Josian

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Speaker 1: Tawer being unceremoniously escorted out of the arena, very highly

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Speaker 1: stage managed event. This, um, do we are we making

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Speaker 1: too much of his exit? Who I mean, honestly, this

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Speaker 1: is one of those things that who is to say.

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Speaker 1: I mean, I think it is a reflection of just

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Speaker 1: you know, China and see jimpink standing in the world,

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Speaker 1: that this single event has has invoked so much criticism

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Speaker 1: and so much speculation. Yeah, it may just be that, um,

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Speaker 1: he's you know, he's quite elderly now and and did

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Speaker 1: appear to be perhaps a little ill, and they even

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Speaker 1: said he was coming back anyway, No more time on

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Speaker 1: on the subject at the moment, but thanks so much

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Speaker 1: Rebecca for joining us. Rebecca Chong Wilkins, Bloomberg News