1 00:00:00,080 --> 00:00:03,760 Speaker 1: Let's get to our guest, Jenny Marsh, Bloomberg's Greater China editor, 2 00:00:04,240 --> 00:00:07,720 Speaker 1: on the government team looking at China's Communist Party Congress 3 00:00:07,720 --> 00:00:13,240 Speaker 1: and the speech by the General Secretary Shi Jin Ping yesterday. Jenny, 4 00:00:13,280 --> 00:00:15,440 Speaker 1: thanks very much for for being with us and taking 5 00:00:15,840 --> 00:00:19,639 Speaker 1: the time from a market standpoint and from a growth 6 00:00:19,640 --> 00:00:23,160 Speaker 1: standpoint in the economy. Um. We had kind of focused 7 00:00:23,680 --> 00:00:25,800 Speaker 1: a little bit in the days leading up to this 8 00:00:26,680 --> 00:00:29,880 Speaker 1: on analysts saying that you know that it was possible 9 00:00:30,040 --> 00:00:35,080 Speaker 1: that President she would would focus on both development and 10 00:00:35,360 --> 00:00:40,320 Speaker 1: security at the expense of of previous General secretaries who 11 00:00:40,440 --> 00:00:44,440 Speaker 1: always said that economic development was number one. Now he 12 00:00:44,479 --> 00:00:48,680 Speaker 1: didn't exactly do that, because he he did emphasize that 13 00:00:48,680 --> 00:00:52,239 Speaker 1: that growth is is still in in focus. Um. But 14 00:00:52,280 --> 00:00:55,000 Speaker 1: he did talk so much about security that I think 15 00:00:55,000 --> 00:00:58,200 Speaker 1: the lines are a bit blurred, aren't they. Yeah, I 16 00:00:58,200 --> 00:01:01,080 Speaker 1: mean national security took it on rominance that we haven't 17 00:01:01,080 --> 00:01:03,800 Speaker 1: seen before in previous speeches. So this is clearly something 18 00:01:03,840 --> 00:01:07,160 Speaker 1: which is gaining ground. Um. But I think you know, 19 00:01:07,800 --> 00:01:10,560 Speaker 1: most analysts were relieved to see that she did still 20 00:01:10,600 --> 00:01:14,880 Speaker 1: put development is the top priority. So for now you 21 00:01:14,880 --> 00:01:17,440 Speaker 1: know that is the government's focus. But for sure you know, 22 00:01:17,520 --> 00:01:20,759 Speaker 1: national security is coming to growing prominence, and I think 23 00:01:20,840 --> 00:01:23,920 Speaker 1: that speaks to sort of the security state that she 24 00:01:24,160 --> 00:01:27,520 Speaker 1: has installed during his decade in power, and also sort 25 00:01:27,520 --> 00:01:30,480 Speaker 1: of the growing um the growing at sternal threats they 26 00:01:30,520 --> 00:01:32,440 Speaker 1: see as well. You know, this is a party which 27 00:01:32,480 --> 00:01:35,920 Speaker 1: is sort of paranoid about foreign forces and the influence 28 00:01:36,040 --> 00:01:40,360 Speaker 1: of external governments on on the security of its rule. 29 00:01:41,440 --> 00:01:43,920 Speaker 1: And speaking of that, let's talk about what happened with 30 00:01:44,000 --> 00:01:46,400 Speaker 1: Taiwan as well. President She's saying they're going to continue 31 00:01:46,440 --> 00:01:51,760 Speaker 1: to strive for peaceful reunification. Yeah, on on Taiwan. You know, 32 00:01:51,880 --> 00:01:55,440 Speaker 1: he basically reaffirmed the government's position, which is that they 33 00:01:55,440 --> 00:01:59,000 Speaker 1: are determined to unify with the Taiwan at some point. 34 00:01:59,280 --> 00:02:01,520 Speaker 1: Probably the most striking line was that, you know, he 35 00:02:01,600 --> 00:02:03,880 Speaker 1: said this is a Chinese issue to be settled by 36 00:02:04,000 --> 00:02:07,080 Speaker 1: Chinese people, which was a not so veiled swipe. But 37 00:02:07,160 --> 00:02:10,079 Speaker 1: the US um Taiwan has become one of the biggest 38 00:02:10,080 --> 00:02:13,359 Speaker 1: flashpoints but to the world, between the world's two biggest economies, 39 00:02:13,560 --> 00:02:16,720 Speaker 1: particularly over the past of twelve months. Um, So that 40 00:02:16,800 --> 00:02:18,799 Speaker 1: was kind of she trying to sort of lay down 41 00:02:18,800 --> 00:02:22,160 Speaker 1: the law about a little bit, I think, and so 42 00:02:22,200 --> 00:02:25,880 Speaker 1: many interesting aspects but another was you know, China's chest 43 00:02:25,919 --> 00:02:29,680 Speaker 1: out on the global stage, and that the Chinese system 44 00:02:30,000 --> 00:02:34,080 Speaker 1: is a model that that can compete with with the West, 45 00:02:34,360 --> 00:02:37,600 Speaker 1: with the post war system that we've had, with multilateralism 46 00:02:37,639 --> 00:02:41,200 Speaker 1: and democracy and free markets. Um. And you know, I 47 00:02:41,960 --> 00:02:44,480 Speaker 1: know that didn't get as much applause as the comments 48 00:02:44,480 --> 00:02:47,200 Speaker 1: about Taiwan and that we would never renounce the use 49 00:02:47,200 --> 00:02:50,200 Speaker 1: of force and such, but is this something that we do. 50 00:02:50,280 --> 00:02:53,560 Speaker 1: We see a lot of countries that want to model 51 00:02:53,639 --> 00:02:58,120 Speaker 1: their their societies after China. I kind of found this 52 00:02:58,200 --> 00:03:00,839 Speaker 1: the most interesting part of the speech actually because last year, 53 00:03:01,360 --> 00:03:04,200 Speaker 1: last week, rather you'd had the Biden deministration coming out 54 00:03:04,200 --> 00:03:06,120 Speaker 1: and saying that China is the only country with the 55 00:03:06,160 --> 00:03:08,880 Speaker 1: intention and the ability to reshape the world order. And 56 00:03:09,080 --> 00:03:11,639 Speaker 1: here is she kind of saying, yeah, you know, we do, 57 00:03:11,720 --> 00:03:15,360 Speaker 1: and and we're going to be open about it. Um. 58 00:03:15,400 --> 00:03:18,280 Speaker 1: I think you do see other countries in the developing 59 00:03:18,320 --> 00:03:21,160 Speaker 1: world who are interested in what China has to offer. 60 00:03:21,520 --> 00:03:23,040 Speaker 1: And you know, we keep seeing this at the u 61 00:03:23,240 --> 00:03:26,120 Speaker 1: N when these votes come up, and you know, China 62 00:03:26,240 --> 00:03:28,720 Speaker 1: is increasingly able to swing more votes when it comes 63 00:03:28,760 --> 00:03:31,639 Speaker 1: to issues like Shinjiang than the US is. There was 64 00:03:31,680 --> 00:03:34,080 Speaker 1: a vote that was put to the U N Human 65 00:03:34,160 --> 00:03:39,680 Speaker 1: Rights Council earlier this month, and the Human Rights Council 66 00:03:39,760 --> 00:03:43,000 Speaker 1: voted not to debate human rights abuses in Shinjuang, even 67 00:03:43,040 --> 00:03:45,800 Speaker 1: though the UN had just published this big report condemning 68 00:03:46,280 --> 00:03:49,000 Speaker 1: what it said could be crimes against humanity in the region. 69 00:03:49,080 --> 00:03:52,480 Speaker 1: So yeah, I think China. But is that the dangling 70 00:03:52,560 --> 00:03:55,320 Speaker 1: of goodies from China and the investment and all that 71 00:03:55,680 --> 00:03:58,560 Speaker 1: more so than the model of its of its governance. 72 00:03:59,600 --> 00:04:01,440 Speaker 1: I think it's a combination. I think, you know, no 73 00:04:01,560 --> 00:04:04,040 Speaker 1: doubt that billions spent during the Belton Road project has 74 00:04:04,080 --> 00:04:09,080 Speaker 1: been very attractive to developing world countries that need infrastructure. 75 00:04:09,560 --> 00:04:11,960 Speaker 1: I also think, you know, a lot of these countries 76 00:04:12,160 --> 00:04:15,280 Speaker 1: are not straightforward democracies, and they like the fact that 77 00:04:15,360 --> 00:04:17,719 Speaker 1: China isn't there to lecture them on sort of adopting 78 00:04:17,720 --> 00:04:20,479 Speaker 1: a Western style model, and there isn't this sort of 79 00:04:21,000 --> 00:04:24,200 Speaker 1: bad feeling letter from colonialism. And I think we kind 80 00:04:24,240 --> 00:04:25,800 Speaker 1: of saw that playing out a little bit when it 81 00:04:25,839 --> 00:04:28,719 Speaker 1: came to um to Russia earlier this year, to to 82 00:04:28,760 --> 00:04:31,599 Speaker 1: a lesser extent, but because you know, the US and 83 00:04:32,160 --> 00:04:34,840 Speaker 1: G seven sort of expected a lot of Global South 84 00:04:34,839 --> 00:04:39,279 Speaker 1: countries to follow its course in enforcing sanctions and sort 85 00:04:39,320 --> 00:04:42,080 Speaker 1: of taking quite a strong line on Russia's invasion of 86 00:04:42,200 --> 00:04:45,120 Speaker 1: the Ukraine, and many of these countries just didn't see 87 00:04:45,640 --> 00:04:49,000 Speaker 1: the need to just sort of, you know, obey basically, 88 00:04:49,040 --> 00:04:51,239 Speaker 1: you know, what the US was dictating its position should 89 00:04:51,240 --> 00:04:53,680 Speaker 1: be on this. So I think China is much more 90 00:04:53,680 --> 00:04:57,919 Speaker 1: sort of um relaxed position. I suppose, well, like this 91 00:04:58,040 --> 00:05:01,160 Speaker 1: idea that we respect your government way of doing things 92 00:05:01,160 --> 00:05:05,119 Speaker 1: and its own independent position appeals to many of these countries. Jenny, 93 00:05:05,120 --> 00:05:06,840 Speaker 1: I want to talk more about, you know, when we're 94 00:05:06,839 --> 00:05:09,800 Speaker 1: going to see China open up and move away from 95 00:05:09,880 --> 00:05:13,479 Speaker 1: COVID zero. Because she praised the no tolerance approach but 96 00:05:13,520 --> 00:05:15,640 Speaker 1: didn't really mention it again, but you look at the 97 00:05:15,640 --> 00:05:21,920 Speaker 1: pictures and the images no masks, Well yeah, exactly. So 98 00:05:22,000 --> 00:05:26,040 Speaker 1: he praised his policy, didn't include anything forward looking on it. 99 00:05:26,160 --> 00:05:30,839 Speaker 1: She wasn't masked his sort of elite um, most elite 100 00:05:30,920 --> 00:05:33,920 Speaker 1: leaders past and present were not masked. Everybody further back 101 00:05:34,000 --> 00:05:37,039 Speaker 1: was masked. So it's kind of symbolic, really, isn't it, 102 00:05:37,080 --> 00:05:40,039 Speaker 1: of how the COVID zero probably is playing out across China. 103 00:05:40,560 --> 00:05:43,440 Speaker 1: But I think the fact there was no forward looking 104 00:05:43,680 --> 00:05:46,279 Speaker 1: element people are trying to sort of read into that, 105 00:05:46,320 --> 00:05:49,320 Speaker 1: maybe some signs of hope, but certainly it's becoming a 106 00:05:49,360 --> 00:05:52,800 Speaker 1: growing point of social and economic tension. I mean, there 107 00:05:52,839 --> 00:05:55,440 Speaker 1: was a protest banner unfelled just days before the Congress 108 00:05:55,480 --> 00:05:58,920 Speaker 1: in Beijing, Uh, you know, saying we don't want PC artests, 109 00:05:58,960 --> 00:06:00,479 Speaker 1: we want to be able to eat. Know, this is 110 00:06:00,520 --> 00:06:04,920 Speaker 1: something which now after three years, people are feeling intolerant. 111 00:06:04,960 --> 00:06:07,640 Speaker 1: Towards how wide spread that intolerance is, It's hard to 112 00:06:07,640 --> 00:06:12,360 Speaker 1: gauge from the market standpoint. Is this a positive? He 113 00:06:12,440 --> 00:06:16,920 Speaker 1: called the tech sector a prime driving force of development. Yeah, 114 00:06:16,960 --> 00:06:18,680 Speaker 1: I think it has to be right. The tex sectors 115 00:06:18,720 --> 00:06:20,919 Speaker 1: had such a hard time in the past few years. 116 00:06:21,680 --> 00:06:26,120 Speaker 1: But she made it clear that, you know, innovation, research 117 00:06:26,279 --> 00:06:28,919 Speaker 1: and self reliance are a key driving out for for 118 00:06:29,000 --> 00:06:31,840 Speaker 1: the tech sector. So I think with that guidance, if 119 00:06:31,839 --> 00:06:34,800 Speaker 1: tech firms are working towards those goals, you have to 120 00:06:34,839 --> 00:06:36,680 Speaker 1: imagine that the policy is are going to be favorable 121 00:06:36,720 --> 00:06:40,040 Speaker 1: towards them and just tell us, I guess more broadly, 122 00:06:40,080 --> 00:06:42,160 Speaker 1: what stood out to you. I mean, we also saw 123 00:06:42,839 --> 00:06:46,760 Speaker 1: she talked about the green goals. For example, he did 124 00:06:46,760 --> 00:06:49,080 Speaker 1: talk about green goals, and you know, to his credit, 125 00:06:49,120 --> 00:06:52,159 Speaker 1: this is one of his big areas of success. Um. 126 00:06:52,200 --> 00:06:55,520 Speaker 1: You know, the war in Ukraine has sort of thought 127 00:06:55,640 --> 00:06:58,520 Speaker 1: some of those plans and it's turned China back towards Cole, 128 00:06:58,600 --> 00:07:01,240 Speaker 1: probably more than it would have liked with have done. 129 00:07:01,560 --> 00:07:03,960 Speaker 1: But she has made clear that he's still committed to that. 130 00:07:04,080 --> 00:07:06,520 Speaker 1: So I think that's a sercaly positive side, not just 131 00:07:06,560 --> 00:07:09,840 Speaker 1: for China but for the rest of the world. Um. 132 00:07:09,880 --> 00:07:12,560 Speaker 1: But I think the big message that she was delivering 133 00:07:12,600 --> 00:07:15,040 Speaker 1: was continuity, and that makes a lot of sense for 134 00:07:15,080 --> 00:07:18,440 Speaker 1: a man who is not about to step down. He 135 00:07:18,480 --> 00:07:22,000 Speaker 1: talked about dangerous storms ahead. Is that mainly in regard 136 00:07:22,080 --> 00:07:26,560 Speaker 1: to confrontation with Europe In the US? Yes, I think so, 137 00:07:26,680 --> 00:07:28,600 Speaker 1: And I think the Communist Party at the moment is 138 00:07:29,360 --> 00:07:33,160 Speaker 1: very focused on its relationship and its competition with the US, 139 00:07:33,200 --> 00:07:36,120 Speaker 1: and I think that was the the outward looking message. 140 00:07:36,160 --> 00:07:38,840 Speaker 1: Here's a strong China, but one that you know is 141 00:07:38,880 --> 00:07:43,520 Speaker 1: facing many external threats. Jenny, thank you very much for 142 00:07:43,560 --> 00:07:46,520 Speaker 1: being with us. Jenny Marsh, Bloomberg Greater China editor on 143 00:07:46,760 --> 00:07:48,640 Speaker 1: the Bloomberg Government team.