In China, a Single Party Divided
By Marc Chandler
NEW YORK (BBH FX Strategy) -- The controversy surrounding the demise of prominent Chinese official Bo Xilai has sparked much debate and speculation about Chinese politics. In that debate, there seems to be a misunderstanding about the way a one-party state works.
I grew up in Chicago. The Democratic Party has run Chicago for almost as long as the Communist Party has controlled China. The Democratic Party took control of Chicago in 1955. The Communist Revolution was 1949. From 1955-1976 Richard Daley was the mayor of Chicago. After an interregnum period, his son became mayor in 1989 and ruled until last year.
A House DividedThere are two main factions for which the procedural consensus applied. First are the "princelings." These are the children of the revolutionary leaders. Bo was one of the princelings. He was the son of a revolutionary hero (one of the eight so-called Immortals). This second generation seems to believe that they "naturally" deserve to be among the leadership. The second faction tend to be of humbler origins and work their way through the Communist Party Youth League. Premier Wen Jiabo comes from this faction. The procedural compromise is that the next premier is from the princeling faction. Likewise, President Hu Jintao is supported by the princeling faction. The procedural compromise is that the next president will be supported by the Youth League faction. The Youth League tends to be more reform-minded and that reform includes some aspect of politics, without of course undermining the Communist Party's control. The princelings tend to be more concerned about the downside of the economic development and tend to harken back to the pre-1978 reform period.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV