China’s policy responses to the current economic downturn are being powerfully shaped by political factors, given the regime’s need to maintain its claim to legitimacy through growth. This will continue during Hu Jintao’s last three years in office to 2012, forming the broad framework for the evolution of the economy and shaping the context for investment decisions.
In our view, the crisis is not weakening the Chinese Communist Party. After a major reorganisation programme, the Party...
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