China’s Communist Party Congress Is Here: What To Look After?

And it is finally here. Chinese communist leaders are gathering in Beijing to hold a once-every-five-year meeting, which is expected to bring relevant changes for President Xi Jinping political strength and the future of the world’s second largest economy.

Yesterday, we have mentioned the importance of this meeting briefly for those trading cryptocurrencies. But that’s not it. The amount of issues discussed in this meeting is large and traders should keep their eyes wide open to take advantage of this key event.

A few (helpful) facts about this meeting:

• The duration is still unknown; the 2013 edition lasted 8 days
• Main goal: vote on the Communist Party leadership
• Nearly 370 members of the party’s Central Committee will be elected
• There are currently 2,287 delegates of the Communist Party
• The new Central Committee will vote on 25 members to integrate the Politburo
• Members of the Politburo will designate its Standing Committee (top leaders)
• Xi Jinping is the President of China and Secretary General of the Communist Party

While this meeting is more about ideology than policy, a series of announcement can take place during the event, regarding monetary policy, the economy, the exchange and many others. Announcement that have the power to put stocks and currencies upside down.

What to expect from this meeting?

Politics: Xi is likely to consolidate his power  and then move forward with strategic plans for the economy and military. Also, the Politburo Standing Committee (PSC) is expected to decrease its number of members. A smaller PSC could be interpreted as a faster policymaking process.

Ideology: The State Council will emphasize the importance of ideology across industries. For such reason, we expect some industries to be provided with more freedom, but in return asked to fulfill tougher ideology standards. More ideological monitoring and regulation.

Economy & Trade: Xi is expected to move forward with a deeper globalized economy in mind. But there are rising troubles inside China that will have to be addressed by the government, including industrial overcapacity, a major challenge for the administration. Experts believe China will become more protectionist domestically but keeping doors open for foreign investors.