‘Common prosperity’ and claim to Taiwan key as Xi Jinping sets out stall for latest term as Chinese leader

Xi Jinping begins his third term as China’s leader with the firmest possible grip on a Communist Party that has strengthened its dominant position in the state, the economy, the military and throughout society. The other six members of the politburo’s standing committee are close allies and Xi has driven out rival factions from the leadership, consolidating power around himself.

In his remarks to journalists as he introduced the new leadership team, Xi said they would keep in mind the party’s “nature and purpose” as they worked to create a better future for the country. The five-yearly congress which ended on Saturday approved a number of changes to the party’s constitution which reflect the course Xi has set for the next five years.

They include a pledge to achieve the gradual realisation of “common prosperity”, a strategy to reduce the vast inequalities that emerged during China’s rapid economic growth over the past four decades. In his report to the congress, Xi promised more for those on low and middle incomes and to tax the rich.

“We will enhance the roles of taxation, social security and transfer payments in regulating income distribution. We will improve the personal income tax system and keep income distribution and the means of accumulating wealth well-regulated. We will protect lawful income, adjust excessive income and prohibit illicit income,” he said.

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This is part of a trend under Xi that western critics describe as putting ideology before economics but it also represents a policy response to the problem of income and wealth inequality felt acutely by many Chinese citizens. It has become more challenging as a zero-Covid policy has combined with external factors to slow China’s economic growth.

The congress also added “opposing and containing Taiwan independence” to the party constitution and Xi won applause from delegates when he said Beijing would never rule out the use of force to regain control of the island. His rhetoric on Taiwan was relatively emollient, however, stressing that China wished to pursue reunification by peaceful means.

Noises from Washington over Taiwan have become more belligerent in recent weeks with President Joe Biden apparently abandoning a longstanding policy of strategic ambiguity to declare that the United States would defend Taiwan by force if China invades. Xi mentioned the word “security” 91 times in his opening address to the congress and called for more “actual combat training” for the country’s military.