The 16^th Communist Party Congress that concluded in Beijing in mid-November was marked by an interesting blend of change and continuity. While the Congress unveiled a new line of leaders, the old leadership has not faded away and would retain its influence. Amidst these changes, however, there has been a reiteration to continuity in overall policies.

The Congress is being widely acclaimed as China’s first orderly transfer of power. It has, however, not been a complete transfer of power. Of his three posts, Jiang Zemin has relinquished only that of General Secretary of the Party, which has been taken over by Hu Jintao. Jiang will continue as President till March next year when the National People’s Congress convenes and then pass the mantle on to Hu. Most importantly, Jiang was reelected as Chairman of the powerful Central Military Commission.

A generational change, has also taken place with power passing into the hands of a younger generation. Most of the outgoing leaders were in their 70s and, besides Jiang, they included Li Peng, Zhu Rongji, Li Ruihan, Wei Jianxing and Li Lanqing. Led by Hu, the new leadership has most of the leaders in their mid-50s or early 60s.

Jiang’s influence is likely to continue even if he no longer holds any party posts and is not a member of the Central Committee. His influence is visible in the nine-member Standing Committee, which includes several of his allies and protégés. They include Jia Qinglin, Wu Bangguo, Zeng Qinghong, Hung Ju, Wu Guanzheng and Li Changchun. The composition of the Standing Committee also reflects the continued dominance of the Shanghai faction in China’s political firmament, which has powerful backers in Jiang and Li Peng, who had both served in Shanghai and have entrenched interests there. The Shanghai lobby has further consolidated its power, with three new members, including Wu Bangguo, who served as Shanghai’s party chief; Huang Ju, who had been the city’s mayor; and Zeng Qinghong, who served as deputy party secretary of the Shanghai municipal party committee. Since most of the new members specialize in domestic economic and other issues with relatively little experience in foreign affairs, there is speculation that Jiang might continue to steer the country’s foreign policy for some time.

Jiang’s influence is also evident in the Theory of Three Represents, which has been enshrined in the Party Constitution. Jiang has strongly identified himself with the Theory, which is seen as his attempt to leave his imprint on the Party’s ideological thought. The Theory of Three Represents commits the party to represent the advanced forces of production, culture and the interests of the Chinese people. By doing so, the Party is also attempting to recast its image, from one steeped in the revolutionary credo to that of a business-friendly regime. It is also, replete with ironies for a Communist Party to openly embrace capitalists into its fold. This is, however, neither a new revelation, given the fact that the private sector has spearheaded the new revolution of a rapidly modernizing and prosperous China. The private sector contributed 33 percent to the country’s GDP in 2001 and provides employment to 42 percent of the workforce in urban areas.

The new theory was also quickly put into practice with the inclusion of the first private sector entrepreneur in the 300-member Central Committee. In the past, the Central Committee has included top representatives of state-owned companies from different industries and sectors. With the inclusion of Zhang Ruimin of the Haier Group, the country’s biggest manufacturer of electrical home appliances, the Party has opened its doors to the private business elite.