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New chief unlikely to stifle brash city

Despite reformist credentials, party boss could face resistance in Shanghai

Shanghai's new party chief is expected to stay the course with the policies that have made the city the mainland's financial centre, but his very appointment raised questions over the stature of the brash metropolis, analysts said yesterday.

Xi Jinping, previously party secretary of Zhejiang province, took up the helm as the city's top leader on Saturday after Chen Liangyu was sacked for corruption six months ago. He is the first outsider - one who has not risen through the city's ranks - to hold the post in 16 years, since Zhu Rongji, who later became premier.

His appointment is seen as a move by the central government to bring under control a city that previously defied orders to slow its economy and curb property speculation, and to foster greater co-operation in the Yangtze River Delta area.

But Shanghai's contribution to the mainland's economy was too great for the central government to completely stifle its growth, analysts said.

'I don't foresee much influence by this new party secretary on the future policies of Shanghai. It is now quite a mature city in a stable stage of development and not, say, at a crossroad. Both citizens and officials have a rather coherent view of the track the city is running on,' said Cheng Yuan, a professor at Fudan University's School of Social Development and Public Policy.

However, Professor Cheng said the new leader would certainly have different priorities than his predecessor, which could affect the implementation of policies.

'The new party secretary may choose his own priorities among a series of challenges the city is now facing, like unemployment, the building of an international financial centre, the ageing population, and environmental protection,' he said.

The government has already halted or criticised some development projects, while others, such as expansion of the domestic airport and an extension of the high-speed maglev train, are moving ahead.

One of the key tasks for the future is preparing for the 2010 World Expo, which will require infrastructure, the support of other provinces, and a deft hand at foreign relations.

'The most important thing for Beijing is to have a successful Expo,' one foreign diplomat said.

The appointment is also 'sweet revenge' for Mr Xi, who, when party chief of neighbouring Zhejiang, often had to contend with competition from Shanghai, said Jing Huang, a senior fellow in foreign policy studies at the Brookings Institution.

From a political point of view, Mr Xi will have to balance the interests of the central government and Shanghai, as well as those of Shanghai and other provinces.

He is acceptable to the camps of President Hu Jintao, Vice-President and Politburo member Zeng Qinghong, and former president Jiang Zemin .

'Beijing should be happy. It's an ideal solution,' Dr Huang said.

Despite his reformist credentials from running both Zhejiang and Fujian province , Mr Xi could face bureaucratic resistance in Shanghai as the city's residents tend to look down on outsiders.

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