Connect with us

Stock Market

WHAT TO LOOK FOR BY REUTERS

Avatar

Published

on


© Reuters. Visitors shaded in front of the Chinese Communist Party flag are seen on display at the Chinese Communist Party Museum in Beijing, China on October 13, 2022. REUTERS/Florence Lu

Written by Yu Lun Tian

BEIJING (Reuters) – China’s ruling Communist Party will adjust its leadership when Congress convenes once every five years starting Oct. 16, with Xi Jinping widely expected to remain in office for a third term as general secretary, China’s highest. .

This break with precedent makes it more than usual difficult to predict the formation of the next Politburo Standing Committee, including who will replace second leader Li Keqiang as prime minister when he retired from the post in March.

The composition of the PSC – which now has seven members, but this number is not fixed – is significant because the party has traditionally exercised “collective leadership”, requiring all decisions of the greatest importance to be put to an internal vote.

Advertisement

Some possible scenarios and outcomes to look for:

Next model

In the past, the next prime minister was only 67 years old, held the position of deputy prime minister, and ran several provincial-level economies as party chief.

Wang Yang and Huo Chunhua tick those boxes, while the likes of Li Qiang and Ding Xuexiang have weaker credentials but are seen as having Shi’s strong confidence.

Many analysts say China’s economic difficulties may tilt the choice in favor of a more experienced economic hand.

Advertisement

Scenario: Wang Yang becomes prime minister.

Wang, 67, is the chairman of the Chinese People’s Political Consultative Conference, a political advisory body. He ranks fourth in the current PSC and is the oldest among the candidates.

Some analysts say a factor not in Wang’s favour is his perceived affiliation with the Communist Youth League, an influential group linked to Li Keqiang that lost power under the Xi.

Others argue that Wang would have earned Xi’s trust after he had kept a low profile and faithfully served by his side at the PSC for the past five years.

Wang’s lifespan will be limited to one term – a point in his favour, party watchers say, as he will be less of a threat in Xi’s eyes since he is unlikely to withstand Xi in a position of power.

Advertisement

Scenario: Ho Chun Hwa becomes prime minister.

He, 59, is one of four vice premiers and also rose through the ranks of the Youth League.

Although younger than Wang, he gained considerable experience managing issues including agriculture and poverty alleviation at the national level, regions including Tibet, Inner Mongolia and Guangdong Province.

He is 10 years younger than Xi’s 69-year-old, which cuts both ways: Xi may be wary of promoting someone with a longer political runway that could outlast or turn upside down. On the other hand, Xi may love – and respect – his youth in a Chinese system where seniority matters.

Even if he doesn’t get the premiership, he may still get a coveted spot in the PSC.

Advertisement

Scenario: Xi loyalists who are less experienced get the nod.

If Xi is strong enough, a trusted loyalist with less direct relevant experience might get the premiership instead.

Li Qiang, 63, is the head of the Shanghai Party and one of Xi’s most trusted aides, but his record has been tarnished by the harsh two-month COVID lockdown of the city’s 25 million residents.

Even if he does not become prime minister, he can still join the PSC.

Scenario: Han Zheng breaks the age limit, and becomes prime minister.

Advertisement

As chairman and only deputy prime minister now on the Standing Committee, Han has first-rate experience but turned 68 in April and is set to retire.

Some analysts suggest that Xi may change the age criteria for Han, who has proven supportive and willing to play Xi’s second fiddle.

Politboro and the Standing Committee

The party’s highest level of power, the Politburo Standing Committee, could get three new members if retirement criteria were maintained and the Peace and Security Council remained at seven members.

More than half of the 25-member Politburo can be replaced.

Advertisement

Scenario: Li Keqiang becomes Speaker of Parliament.

After Li, 67, steps down as prime minister, he can leave politics or, after a precedent in 1998, remain in the PSC as speaker of parliament, the National People’s Congress, which is China’s third.

Some party observers speculate that Lee, whose power as prime minister has waned under Xi and whose economic reformist approach differs from that of Xi, favors a full retirement.

Others point out that Lee will not leave as it may give the impression of a rift among the leaders.

Scenario: Xi loyalists promoted to Politburo, PSC.

Advertisement

Other Xi aides seen as having good prospects for promotion, both within the Politburo and in the PSC, include Xi’s top aide Ding Xuexiang, 60; Chongqing Party Chairman Chen Miner, 62; Li Shuli, 58, the party’s No. 2 publicity official; and Chief Security Officer Wang Xiaohong 65.

Scenario: Most of the Politburo seats are flipped.

Economic Czar and Deputy Prime Minister Liu He, 70, is set to retire. Critics suggest he could be appointed vice president, a position that does not have a strict age limit. He is expected to be replaced by He Leifeng, 67, the head of China’s state planner and a longtime ally of Xi.

The only woman in the Politburo, Vice Premier Sun Chunlan, 72, is also set to retire. The best-placed woman to replace her was Shen Yichen, 62, a member of the Bai ethnic minority and party leader in impoverished Guizhou province.

China’s top diplomat, Yang Jiechi, 72, who is representing Xi in the party’s foreign affairs decision-making body, is due to retire. He is due to be replaced by Foreign Minister Wang Yi, 68, and Xu Qiliang and Zhang Yuxia, both military leaders of the Politburo, are also slated to retire at 72. Possible alternatives include Rear Admiral Miao Hua and Army General Liu Xinli.

Advertisement

Scenario: PSC New Arrivals – All or Nothing.

Critics are not ruling out the slim possibility that there will be no new members to the PSC at all – a strong indication that Xi wants to stay beyond a third term.

Another extreme scenario is for Xi to exchange all his current peers in the PSC for new faces, who would be younger and more submissive.

Source link

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published.

Stock Market

Volkswagen delays decision on gigafactory in Eastern Europe, by Reuters

Avatar

Published

on


© Reuters. FILE PHOTO: The Volkswagen logo is pictured at the 2022 New York International Auto Show, in Manhattan, New York City, US, April 13, 2022. REUTERS/Brendan McDiarmid

PRAGUE/FRANKFURT (Reuters) – Volkswagen has delayed its decision on where to build a giant electric car battery plant in Eastern Europe until after 2022, citing economic uncertainty and rising energy prices in the region.

“Volkswagen AG (OTC:) and its battery subsidiary Powerco are constantly evaluating suitable locations for its next giant plant in Europe,” the automaker said in an email Thursday.

“There is no pressure to act because we are taking more time to decide given the current circumstances,” she said. “At present, there is no impact on the planned start of construction or start of production.”

The European Union fears a mass exodus of investment to the United States in light of the generous subsidies for green energy provided by companies under the law to reduce inflation, just as energy prices in Europe recorded record levels with the continued lack of securing supplies for next year.

Advertisement

Sweden’s Northvolt said in October that it may prioritize expanding battery plants in the United States over Europe in light of Europe’s energy landscape.

In an interview on Tuesday, Volkswagen (ETR:) brand chief Thomas Schaefer said energy prices in Europe make it difficult for shareholders to justify to shareholders why the automaker is building a battery plant there.

“If you have the option of building a battery plant in Europe, where electricity costs 15 cents a kilowatt-hour, but you can get it in China or America for 2-3 cents, we’re not in a position under financial corporation law to say we’ll do that,” Schaefer said. Here in solidarity.

“This is a hot topic and people often underestimate the complexity of it going forward here,” he added.

The Eastern European plant will be the fourth under former CEO Herbert Diess’ plan to build six such sites with partners across Europe by the end of the decade.

Advertisement

The sites under study include the Czech Republic, Hungary, Poland and Slovakia.

Skoda Auto, Volkswagen’s Czech unit, said in October that it expected the parent company to make a decision on the site by the end of 2022.

However, Volkswagen’s new chief Oliver Blum is putting much of his predecessor’s legacy under the microscope, overhauling the company’s software strategy and reevaluating the factories that make the models.

It began looking for sites for its first large-scale factory outside Europe, in Canada.

Source link

Advertisement

Continue Reading

Stock Market

Tesla is preparing to bring out the short Model Y in China as demand fades

Avatar

Published

on

Tesla (TSLA) – Get a free report China will suspend production of its Model Y sedan during the last week of the year, reports said Friday, adding to concerns about weak demand in the world’s largest auto market.

Reuters reported on Friday that the Model Y production suspension will begin December 25 and run through January 1, according to a company note, and will eventually reduce production of the sedan by about 30% from November levels.

The move would be the first time Tesla has voluntarily reduced production levels since the factory opened in 2018, despite Covid restrictions and scheduled maintenance that curtailed production earlier this year.

Advertisement



Source link

Continue Reading

Stock Market

Telecom Italia piques investor interest as government reviews network options, by Reuters

Avatar

Published

on


© Reuters. FILE PHOTO: The Team logo is seen at the company’s headquarters in Rome, Italy on November 22, 2021. REUTERS/Yara Nardi/File Photo

Written by Elvira Polina and Giuseppe Fonte

Milan (Reuters) – Telecom Italia BIT 🙂 (TIM) is exploring investor interest in buying its assets, sources familiar with the matter said on Friday, as officials within Italy’s right-wing government seek agreement on how to fix the debt-laden company’s problems. The Italian government said last month that it would seek to identify the “best market-friendly options” by the end of the year to counter ailing TIM, and laid out a planned bid for the group’s telephone network by state lender CDP.

The discussed multi-billion dollar deal, part of a broader project to create a unified Italian network company with CDP’s broadband unit Open Fiber, was a focal point of CEO Pietro Labriola’s strategy to split TIM into several units and cut €25 billion ($26.4 USD) . billion) debt pile.

Labriola is looking to prepare for any outcome of the talks within the government. Three informed sources told Reuters that the executive had been working privately with US fund KKR recently. The sources said the US fund, which already owns a stake in TIM’s last-mile network and had a bid to take over TIM as a whole that was rejected this year, recently renewed interest in tightening its grip on TIM’s terrestrial network. TIM has also made contacts with other potential investors interested in buying into its domestic service operations, including French telecoms group Iliad and Poste Italiane, the sources said.

Advertisement

Any deal involving foreign investors and TIM assets would be subject to government scrutiny under “golden power” regulation, which gives Rome the possibility to block the deal.

According to sources, at least two have expressed interest in TIM’s Brazil-listed subsidiary TIM SA. However, in Labriola’s view, selling a unit that generates about 30% of the group’s underlying profit could be dangerous to TIM’s credit rating, unless it comes up with an excellent rating, according to People. Telecom Italia, KKR, Poste and Iliad all declined to comment.

Discussions within Prime Minister Giorgia Meloni’s administration focus on how to take control of TIM’s precious landline network, an asset considered strategic. The government has not yet started talks with TIM stakeholders – including major investor Vivendi (OTC:). Raising cash to reduce debt and shore up its finances is key for TIM, which has been under pressure for years in its highly competitive domestic market and hit by multiple credit rating downgrades to junk territory over the past year.

($1 = 0.9475 euros)

Source link

Advertisement

Continue Reading
Advertisement

Trending