China debates economic future

China's leaders will seek ways to narrow the economic and social rifts threatening long-term growth at a conclave that opened…

China's leaders will seek ways to narrow the economic and social rifts threatening long-term growth at a conclave that opened today and could signal who will succeed them in running the world's most populous country.

The ruling Communist Party's Central Committee meeting in Beijing will set key parts of the next five-year development plan starting in 2011, which President Hu Jintao has said must promote "inclusive growth", and encourage more domestic household demand to shore up GDP growth as external demand flags.

That will not be easy for an economy grown used to expanding on the back of cheap labour and exports. Workers and farmers will need higher wages, improved welfare and more affordable housing, making greater demands on the government to deliver.

The four-day meeting in west Beijing, which started today, may also approve promotions to firm up officials' prospects in an emerging leadership to succeed Mr Hu and Premier Wen Jiabao.

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The results will be announced only after the meeting ends on Monday and state media issues a broad summary. The full details of the five-year plan will appear only next year.

Much of the guessing in Beijing is about whether Vice President Xi Jinping will be promoted to the Vice Chairmanship of the Central Military Commission, cementing his status as favoured successor to Mr Hu, who gives up the presidency in early 2013.

But whatever their eventual pecking order, China's emerging leaders are likely to stick to the government's current formula of refocusing the economy on domestic demand and avoiding bold political experiments.

Chinese premier Wen Jiabao has repeatedly called for more urgent reform of the political system to give citizens more say. But there are no signs the Party meeting will head down that path. The government's vehement condemnation of the Nobel Peace Prize for dissident Liu Xiaobo has shown how far the Party is from embracing the democratic changes some critics want.

"Significant political reform is not on the agenda," said Li Datong, a political commentator and former newspaper editor in Beijing. "Especially at this time, they'll be extra careful."

Reuters