Xi Stays The Course Amid Rising Calls For Change

However, in a possible sign that unease persists, the decision stressed the need to establish Xi's core position on the all-important Central Committee and the party as a whole. That position had, in theory, already been cemented, prompting the question: Why the need to emphasize again now?

Xi and his political thoughts pepper the decision, and it makes clear that both party – and his – control is crucial. This approach will maintain the ongoing tension between the need to innovate to address China's economic needs and making sure that any changes to policy take place firmly within the framework laid down by party leadership.

At its core, the decision lays out how Xi intends to safeguard what he sees as his legacy.

As such, it touches on economic, social and security concerns that could threaten that legacy – be it faltering growth , tensions with regional rivals and the U.S , growing income inequality and a divide between urban and rural economies .

The decision is packed full of intentions but provides few concrete proposals. Even so, the broad strokes it provides give a glimpse into Xi's thinking.

With respect to the economy, the decision confirms the shift from an obsession with growth at all costs to an emphasis on the quality of growth.

As such, it stresses“high-quality development” as the key component of Xi's new philosophy. In real terms, this means a shift from the traditional drivers of the economy – labor, capital and the land – to new technologies and innovations, such as artificial intelligence and green energy.

This approach is aimed at moving China up the value-added chain and developing the cutting-edge technologies of the future.

Xi has touted the move to“high-quality development” as a way to create a more equitable society . But given that the vast majority of Chinese workers aren't employed in these advanced sectors, it is difficult to see how Xi could pull this off.

Similarly, when it comes to remedying the slowdown in the Chinese economy, the decision's policy priorities send conflicting messages.

It reaffirmed the need for China to continue global engagement and to place the private sector on an equal footing with its state-owned counterpart . However, it makes clear that it is the state sector and state financing that will play the major role in helping the party meet its goals, while the private sector will receive“guidance.”

And investors appear skeptical: The Chinese stock market saw its largest drop in six months when the decision was published.

And there is some doubt that China's commitment to global engagement will be sufficient to calm the concerns of the international business community .

The decision certainly identifies some of the key areas of domestic concern in China.

Take, for example, the thorny problem of local government debt . Local governments are burdened with mandates set by the central government to provide for a range of expensive social programs, including pensions and health care insurance – which are not funded adequately.

While local authorities in the past have looked to land sales to plug the budget gaps, a severe slump in property prices has left their finances looking increasingly shaky.

The decision calls for local governments to have more financial resources at their disposal, funded by a larger slice of tax revenue being distributed centrally.

Further, a“clear division” of powers and responsibilities between the central and local authorities is to be established – something the party previously promised would be implemented by 2020.

Concern from party leaders over wealth inequality is reflected in the decision, which calls for more inclusive public services to provide a cushion for those most in need.

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But the most glaring inequality is driven by the differences between China's rural and urban areas. Rural households in China suffer significantly lower income , and the gap has grown in recent years.

The decision sees greater and more effective urbanization as key to resolving inequality. A key part of the plan is to eliminate the system of household registration that ties individuals to their place of birth. As a result, many rural people who move to cities are denied access to better urban services, as they are still considered to be villagers.

The abolition of household registration has been promised for many years, but it is yet to be realized.

Blind faith not enough

Taking as a whole, the plenum's decision reveals many intentions but offers little detail about how to achieve it all in the timeline set – just five years.

But in not offering anything new, the decision is making a point: Xi's approach – long established – was, and is still, the best way to move China forward. Calls from within China and outside for fundamental changes are, it follows, to be ignored.

But there is a danger for China – and Xi's legacy – in adopting such intransigence. Many of the problems plaguing China – in particular the gradual slowing of economic growth and creeping inequality – demand more than just good intentions and blind faith that the party knows best.

Anthony Saich is Professor of International Affairs, Harvard Kennedy School

This article is republished from The Conversation under a Creative Commons license. Read the original article .

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