The 2013 NPC and CPPCC Annual Sessions have ended with the formal selection of China’s new leaders. Not surprisingly there were few surprises. My quick take is that the leadership is saying all the right things, but they have been saying these things for quite a while – nearly two years in the case of Li Keqiang, the new premier.
The constraints they face, however, have neither changed nor been addressed. First, any real rebalancing means much slow growth than Beijing seems willing to tolerate. Second, the groups (“vested interests) that have benefitted from the old growth model remain very powerful and very reluctant to allow any erosion of the benefits they have accrued.China Financial Markets
The challenges for China’s new leadership
Michael Pettis | Senior Associate at the Carnegie Endowment for International Peace, a finance professor at Peking University’s Guanghua School of Management, and Chief Strategist at Guosen Securities (HK), a Shenzhen-based investment bank
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