November 15, 2012

NEW CHINESE LEADER OFFERS FEW HINTS OF A SHIFT IN DIRECTION

[He also pledged to improve citizens’ lives, including offering “better schooling, more stable jobs, more satisfying incomes, more reliable social security, higher levels of health care, more comfortable housing conditions and a more beautiful environment,” so they can “look forward to their children growing up in better circumstances, finding better work and living in better conditions.” ]

By Ian Johnson
Peter Parks/Agence France-Presse — Getty Images
Passengers on a Shanghai subway on Thursday watch Xi Jinping deliver his first
speech as China’s new leader. More Photos »
BEIJING — China’s new leader, Xi Jinping, impressed many people with a plain-spoken promise to address problems in the country’s ruling party on Thursday, but his new leadership team offered few clues as to a clear shift in direction.
Mr. Xi, who formally took over from Hu Jintao as general secretary of the Communist Party on Thursday, was presented to foreign and domestic reporters after a highly scripted party congress intended mainly to laud the work of Mr. Hu and set very broad priorities for Mr. Xi’s tenure.
According to tradition, Mr. Xi appeared onstage the day after the congress ended with other members of the party’s Politburo Standing Committee, the seven-member body that effectively runs China.
Mr. Xi then gave a speech on live television that avoided most of the slogans that characterized Mr. Hu’s recent addresses. In fact, he did not mention Mr. Hu or any of his predecessors, instead calling on the party to fight corruption and promising to continue China’s “rejuvenation.”
“Inside the party, there are many problems that need be addressed, especially the problems among party members and officials of corruption and taking bribes, being out of touch with the people, undue emphasis on formalities and bureaucracy and other issues,” Mr. Xi said.
He also pledged to improve citizens’ lives, including offering “better schooling, more stable jobs, more satisfying incomes, more reliable social security, higher levels of health care, more comfortable housing conditions and a more beautiful environment,” so they can “look forward to their children growing up in better circumstances, finding better work and living in better conditions.”
“People’s striving for a better life is the goal we are struggling for,” he added.
Reflecting his upbringing as the son of a high-ranking official in Beijing, Mr. Xi spoke in clear Mandarin Chinese, making him one of the first modern Chinese leaders whose speech does not bear the heavy accents of an upbringing in one of China’s provinces.
Mr. Xi takes office with more titular authority than any Chinese leader in history. He will now be the chief of the ruling Communist Party and will take over sooner than expected from Mr. Hu as the chairman of the Central Military Commission, the top overseer of China’s armed forces. Next spring, he will assume the position of state president. Other leaders in the post-Mao era have had more staggered transitions into the top posts.
Even so, Mr. Xi will have to contend with numerous other well-connected princelings, or sons and daughters of influential past leaders, and a factionalized Communist Party that tends to operate by consensus rather than strongman rule. He is unlikely to have the sweeping authority of Mao or Deng Xiaoping.
Although Mr. Xi’s appointment has been expected since 2007, when he was essentially named Mr. Hu’s successor, it was the first chance for the Chinese to see him in action. Li Zhong, a retired county leader in Hebei Province who served there at the same time as Mr. Xi in the early 1980s, noted that Mr. Xi had not repeated many of Mr. Hu’s slogans.
“Instead, he stressed the party’s responsibilities to the masses and the heroism of the people, as well as the need to root out corruption in the party,” Mr. Li said. “He was very frank and showed his consideration for the people.”
His speech was also widely discussed on China’s social media sites, which largely reflect an educated urban population.
He Bing of the University of Political Science and Law in Beijing wrote on the Weibo microblog, “He speaks with a human touch.”
Others were more critical.
“I read Xi’s speech,” Jian Heng, a guest professor at Shantou University in Guangdong Province, wrote on Weibo. “He mentioned the word ‘party’ 20 times; ‘people’ appeared 19 times; ‘responsibility’ was said 10 times and ‘problems’ three times. Didn’t use anything related to law. No ‘law,’ no ‘constitution,’ no ‘rule of law’ nor ‘democracy,’ no ‘freedom.’ ”
No one can know for sure whether Mr. Xi favors fundamental political changes of that kind — he has given no clear indication that he does. What is clear is that his fellow members of the Standing Committee are longtime party veterans whose track records provide no evidence of a strong impulse to change the way China is governed, and whose ages means they will probably have relatively short careers in the country’s top ruling body.
Mr. Xi is 59 and his No. 2, Li Keqiang, who is expected to take control of the bureaucratic apparatus of government as prime minister next spring, is 57. But the other five members are all in their mid-60s. Under the party’s internal rules, that means they are all likely to retire at the next party congress in five years. Given the intensely consuming task of negotiating top leadership slots among competing factions, finding suitable replacements for these five could take up much of Mr. Xi’s time and political capital.
The other members of the Standing Committee are Zhang Dejiang, 65, Liu Yunshan, 65, Wang Qishan, 64, Yu Zhengsheng, 67, and Zhang Gaoli, 65.
“This is quite a mediocre lineup, and we’ll have to wait and see what they do,” said Pu Zhiqiang, a Beijing-based lawyer who often handles human rights cases. “The way of Chinese politics means that their past performances don’t show what they’ll do in the future.”
Another problem is that the leadership reflects the strong hand of Mr. Hu’s predecessor, Jiang Zemin. Although Mr. Jiang, 86, retired a decade ago, he has close ties with at least four of the seven members. That means he was able to override Mr. Hu and place his people in top slots even though he has no formal position in the party.
“The bad news from looking at the political system is that it really seems to have thrown a wrench in our understanding of institutionalization,” said Joseph Fewsmith, a professor at Boston University who specializes in Chinese politics. “This whole institutional idea that people retire and then don’t play much of a role seems to have been pretty well demolished.”
Mr. Xi did keep one tradition, however. Like Mr. Hu, who gave almost no interviews to foreign reporters during his 10 years in office, Mr. Xi left without taking any questions from the scores of waiting journalists.
Jonathan Ansfield contributed reporting, and Shi Da contributed research.

 @ The New York Times


[But its revenue missed analysts’ predictions. It rose 3.4 percent, to $113.2 billion, compared with expectations of $114.96 billion. The company said that without currency fluctuation, sales would have been $114.9 billion. Sales at stores open at least a year in the United States grew 1.5 percent, a little less than analysts had projected. ]
Wal-Mart disclosed on Thursday that it has expanded an internal investigation into bribery accusations in Mexico to Brazil, China and India.
The company acknowledged the expanded inquiry in a Securities and Exchange Commission filing that accompanied its third-quarter financial results, which showed lower sales than analysts had expected.
Wal-Mart had previously reported that the audit committee of its board was examining possible violations of the Foreign Corrupt Practices Act in Mexico.
“Inquiries or investigations regarding allegations of potential F.C.P.A. violations have been commenced in a number of foreign markets where we operate, including but not limited to Brazil, China and India,” the company said in its regulatory filing.
Wal-Mart’s shares were down about 3.5 percent in midday trading.
The New York Times reported in April that seven years ago, Wal-Mart had found credible evidence that its Mexican subsidiary had paid bribes, a violation of the Foreign Corrupt Practices Act, and that an internal investigation into the matter had been suppressed by executives at the company’s Arkansas headquarters.
The company has had teams of lawyers looking into the Mexico issue and potential violations of the law elsewhere. In the filing, the company said it had “identified or been made aware of” other potential violations. “When such allegations are reported or identified, the Audit Committee and the company, together with their third party advisers, conduct inquiries and when warranted based on those inquiries, open investigations,” it said.
Wal-Mart suggested in May that the investigation had broadened, but Thursday’s filing with the S.E.C. was the first time it has specified the other countries it is looking into.
The S.E.C. and the Justice Department have opened investigations into the Mexico matter, and Wal-Mart said it is cooperating with them. Charles M. Holley Jr., Wal-Mart’s chief financial officer, declined to comment Thursday on whether the agencies are looking into countries other than Mexico.
“As you would expect with these matters, because they’re under review, it would be inappropriate for me to comment on specific matters until the investigation is concluded,” he said.
The company spent $99 million in the first nine months of the year in expenses related to the matter, like complying with subpoenas, defending itself against shareholder lawsuits and conducting the review.
The company exceeded third-quarter earnings expectations by a penny a share, reporting profit of $3.63 billion, or $1.08 a share, compared with $3.33 billion, or 96 cents a share, in the period a year earlier.
But its revenue missed analysts’ predictions. It rose 3.4 percent, to $113.2 billion, compared with expectations of $114.96 billion. The company said that without currency fluctuation, sales would have been $114.9 billion. Sales at stores open at least a year in the United States grew 1.5 percent, a little less than analysts had projected.
In recorded statements, Wal-Mart executives indicated even middle-income consumers were under increasing pressure. At the company’s Sam’s Club division, a warehouse club that attracts a higher-income shopper than Walmart stores, shoppers are starting to swap out steak for pork, for instance, because it is cheaper.
The company said Hurricane Sandy had cost it about $35 million in damaged inventory and cleanup costs but had not significantly affected its ability to get merchandise to stores.