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Which way forward?

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Since Deng Xiaoping began the process of reform and opening up almost 28 years ago, China has repeatedly had internal debates, often heated, as to whether changes have gone too far. A recent, well-publicised article in the official People's Daily shows that another debate is raging, but party leaders, including President Hu Jintao, have come down decidedly in favour of pressing ahead with reform.

The authoritative nature of an article published this month was reflected by the wide publicity it received in the official media. It called on all party members to 'unwaveringly uphold reform', and said China had no choice but to deepen market reforms and open further to the outside world.

The strong opposition to reform and the problems that have surfaced - including widespread corruption, exploitation of farmers by local officials and the widening gap between rich and poor - have led to criticism that the government has to clamp down and not allow the market to operate unfettered.

The debate over the pace and direction of reform led to the shelving of a law on private property that had been scheduled for enactment during the National People's Congress session in March. It now appears that the legislation will be presented at the congress' annual session next year.

Another law in the works would detail procedures for the NPC to supervise the work of the government. It, too, is likely to stir controversy, and may be seen as an element of political reform.

The continuing debate is couched in terms of market forces versus government control. But it reflects another debate below the surface - that of increased political participation versus continued authoritarianism. It is interesting to note that Mr Hu, asked about political reform while he was in the United States this year, responded that 'there is no modernisation without democracy'. Referring to Marxist theory, he provided a link between economic and political reform, saying: 'I believe that the development of the political infrastructure must be compatible with the economic foundation.' This suggests that, once economic reform has developed to a certain extent, political reform will follow.

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