How the Once-a-decade Political Transfer in China Affects U.S. Co
Many investors around the world are keeping a close eye on the Chinese economy. This is because a growing number of companies depend on the Chinese economy for their corporate earnings growth. One of the most important events in China is the transfer of power within the Communist Party that happens once a decade. The 18th National Congress starts on Thursday and ends next week.
Many are hoping that the new leaders for the Chinese economy are reform-minded, continuing to open markets and the possibilities for the corporate earnings growth of foreign firms. However, new sources are stating that a large number of conservative members will be making up the leadership of the Communist Party. (Source: “Conservatives dominate latest line-up for new Communist Party leadership,” South China Morning Post November 2, 2012.)