Xi’s close aides move into position

Xi’s close aides move into position
Mary Ma
Monday, January 20, 2014
The National People’s Congress and Chinese People’s Political Consultative Conference will convene their annual meetings next month, offering more insight into Beijing’s changing politics.In the Communist Party’s third plenum last year, it was decided to set up two powerful committees. One was given the responsibility of deepening reforms. It’s expected this committee’s lineup will be among the agenda topics.

As the premier, Li Keqiang had been expected to play an important role there. But the latest talk is that he won’t. Instead, Politburo Standing Committee member Wang Qishan will be President Xi Jinping’s top deputy in the group – even though he ranks second to last among the seven members.

If confirmed, that would be shocking.

Since assuming power, Xi has been boosting his authority with a vigorous crackdown on corrupt cadres. If past party leaderships were identified by a presidential and premier partnership – as in Jiang Zemin-Zhu Rongji and Hu Jintao-Wen Jiabao, the current one sees Li playing a quiet role further in the background.

The committee is expected to oversee reforms in areas ranging from politics, to military, economy, culture, social and environment. Apart from the military, aren’t the rest supposed to be all part of the State Council’s work?

If the rumors turn out to be true at the NPC and CPPCC sessions, it will only intensify speculation that Li is being sidelined.

After Xi, Wang is arguably the most reported standing committee member. Put in charge of the corruption crackdown, Wang is also a known expert on economics and finance.

Over the weekend, there was another intriguing incident. In his newspaper column, former NPC deputy Ng Hong-man published a letter from Wen, in which the former premier pleaded his innocence over claims his family amassed a huge fortune during his decade in power.

“I have never been involved, and would not get involved, in one single deal of abusing my power for personal gain, because no such gains whatsoever could shake my convictions,” Wen wrote. “I want to walk the last journey in this world well. I came to this with bare hands, and I want to leave this world clean.”

What’s intriguing wasn’t Wen’s proclamation of innocence – since he already did that when The New York Times ran its expose about his relatives’ involvement in the Ping An Insurance saga.

Instead, it was the fact Wen had to rely on the foreign media to make his voice heard inside the mainland. His plea of innocence ramped up discussions on the internet – some favoring him, but more expressing doubts.

Why couldn’t Wen speak directly to the mainland media to state his case?

Among all former state leaders, Wen may be the one appearing in public the most. If the traditional political wisdom still prevails, he should be safe.

But as political rules are being rewritten in Beijing, it’s doubtful whether traditional wisdom is still valid.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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