By John Wong, Lai Hongyi

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Additional resources for China into the Hu-wen Era: Policy Initiatives And Challenges (Series on Contemporary China)

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Certainly, Hu's authority-making is also based on performance, patience and gradual acceptance by the armed forces. , lack of concrete internal support and ultimate reshaping Party/military relations in China. So far, Hu has done an impressive job in obtaining a leadership height vis-a-vis the PLA. This chapter is an attempt to review the evolution of Party-military interaction at the final stage of power transfer against the backdrop of Jiang-Hu interaction. CMC CHAIR: SYMBOL OF THE TWO-LINED LEADERSHIP The Fourth Plenum of the Sixteenth Central Committee of the Party in September 2004 finally ended the lingering suspense of when and how Jiang passed his helm of the CMC onto Hu.

In addition to addressing the issue of NPL capital injections and setting up asset management companies, China needs to significantly change the 16 John Wong and Lai Hongyi management, culture and reporting practice of the banks. The second is reform of capital markets. The state's predominant holdings of share of SOEs need to be reduced and Chinese companies need stronger corporate governance. Reforms of the bond market are also needed. The third area is regulatory reform. The Chinese have made strides by establishing three separate regulatory commissions for banking, securities and insurance and by consulting international advisory councils.

Since the early 2000s, the major cause for conflict in China has been The Hu-Wen New Deal 21 land use. Through mandating local government to compensate re-settlers, the central government has alleviated, if not eliminated, grievances. Ironically, Cai concludes, the Chinese government's solid reputation for not allowing political action may help it to maintain political stability. Disruptive action in China is thus manageable, instead of regime-threatening. A major item of social policy priority for Hu and Wen is social welfare, security, and protection.

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