Backlash from rebounding conservatives challenges pace of reforms

President Hu Jintao and Premier Wen Jiabao are now facing a serious backlash from conservative economists and officials over the direction and thrust of China's economic reforms and open-door policies.

An intense and boisterous debate that has raged within the walls of the Communist Party and government offices for the past 12 months shows no signs of abating and has now reached the official media, signalling a further escalation.

On the surface, the debate is over whether China should pursue 'equity' as the overriding priority in its future economic development blueprints, after more than 20 years of torrid economic development that made 'growth' or 'efficiency' the priority.

But underneath, it marks a strong resurgence of conservatives, within and outside the ruling class, who have made blatant calls for a rolling back of economic and social reforms, blaming them for the growing social unrest and rampant corruption across the mainland.

Top leaders, including President Hu and Premier Wen, seem to have stayed above the debate so far, but there are concerns the backlash could force them to slow down reforms.

To detractors, China faces similar, if not more serious, conditions than those that led to the massive pro-democracy rallies and the subsequent bloody crackdown of June 1989. They have pointed to rampant official corruption, growing social unrest, widening income gaps, serious environmental degradation, soaring unemployment, worsening law and order and failed reforms in housing, medical care and education.