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Invest2 publishers3 min readPublished

China sets its fifth plenum for October 26 with party discipline already on the agenda

The Politburo fixed the dates on the 21st and queued a drafted decision on strict party governance for the session. Under the old sequence the fifth plenum handled the five-year plan; this term's went through the fourth.

The Investor · Invest desk

Photograph accompanying China sets its fifth plenum for October 26 with party discipline already on the agenda
Photo: en.sedaily.com

What happened

  • The Politburo, meeting on the 21st under Xi Jinping, set the fifth plenary session of the 20th Central Committee for Beijing from October 26 to 29, Xinhua reported.
  • The Central Committee has 205 members including Xi and meets in plenary once or twice a year on major policy direction and senior personnel across party, government and military.
  • Conventions began breaking down in Xi's second term, and in the current one the third session was delayed and the five-year plan was decided at the fourth plenum.
  • Media in Hong Kong and Taiwan have said 30 to 40 Central Committee seats, including seats held by military figures, could change hands.

Compiled by The InvestorSomething wrong?How this is made

Why it matters

  • constraint An allocator timing China exposure to a five-year-plan reveal in late October is pricing an agenda for which the Politburo has already tabled a different document.
  • contradiction The same account that makes the fifth plenum the plan-setting session also records the sequence breaking down from 2017, so precedent cannot carry the positioning weight put on it.
  • exposure Individual officials are the ones with something to lose here: the body that meets in Beijing is the one that signs off on removals.
  • precedent If the 20th Central Committee skips the sixth and seventh sessions before next year's congress, this is the last fixed plenary date on the calendar to position around.

Thirty to forty seats out of 205 is between 14.6 and 19.5 per cent of the Central Committee, and that is the turnover Hong Kong and Taiwan media have floated for the October session, military seats included [9][2][1].

When a senior figure holding a Central Committee seat is removed over corruption or another serious case, the Central Committee gives final endorsement to the action taken against that person [10].

The Politburo has also done the paperwork on the agenda. On the 21st it reviewed feedback gathered inside and outside the party on a draft titled the party central leadership's decision on several major issues in persistently advancing the comprehensive and strict governance of the party. It decided to submit the document to the fifth plenum after incorporating revisions [5]. The Politburo said the party must "properly rectify and resolve the prominent problems facing party building". It must also "consolidate and develop the sound political situation created through party governance, and open a new chapter in governing, rejuvenating and strengthening the party in the new era" [6]. The South China Morning Post reported that the decision was taken at Monday's meeting of the 21-member Politburo, chaired by Xi Jinping [12].

Then the economic question. Under the convention that took hold after 1992, seven plenums fell in each five-year term of the Central Committee. The third laid out a blueprint for five years of economic policy and the fifth took up the next five-year plan [3]. That pattern held through the two decades of the Jiang Zemin and Hu Jintao eras [4]. It stopped holding in Xi's third term, when the third session was delayed and the five-year plan was decided at the fourth [7]. Anyone positioning for a five-year blueprint in late October is positioning for a document that has already been through a plenary session.

A sequence rearranged once can be rearranged again, and nothing in the announcement confines the plenum to the one drafted document [5]. And the calendar beyond October is loose. A party congress is set for the second half of next year to launch the 21st Central Committee, so the 20th may not hold all seven sessions. That would leave the two slots after this one unused [8][2].

What the record supports is narrower than the precedent argument. It supports fixed dates, a 205-member body that meets once or twice a year on policy direction and senior personnel, and one governance decision queued for submission [1][2][5]. Seoul Economic Daily reported that observers expect the session to focus on political and ideological rectification ahead of next year's congress, which will determine whether Xi begins a fourth term [11]. I would treat four days in late October as a personnel event, and read the economic content off what the fourth plenum already decided [7].

What to watch

  • The communique at the close on October 29, and whether it names removed Central Committee members or fills their seats.
  • Whether a sixth or seventh plenum is scheduled at all before the party congress in the second half of next year.
  • Any economic or five-year-plan language in the communique beyond the governance decision, which would show the agenda widened.
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