After the recent surprises brought about by Brexit and the election of Donald Trump, many are questioning whether democracy is an effective system. In last year’s edition of our annual Democracy Index, The Economist Intelligence Unit’s analysts identified public anxiety as a stress point for democracies in 2016 (watch out for the next edition of the Democracy Index, due in January). For the Chinese Communist Party (CCP), electoral travails in some of the world’s leading democracies provide succour and reinforce its message to the people of China that democracy is not desirable. However, there is no avoiding messy politics; it is just a matter of the means through which it happens and to what extent it does so in public view.

China has its own messy elections. Fluid power alliances within the CCP, combined with certain set-piece events, fulfil a role similar to multi-party electoral processes in democracies. One critical such event is the reshuffling of the politburo, which will take place at the end of 2017. Just as in the US election, punditry here is based on speculation and gossip, along with occasional facts. The CCP election process can be just as messy as a democratic election, and China is not immune to the risk of unexpected outcomes.

Do you think China has a better system for political transition than the US? [My bolding.] How might the leadership changes affect your business? Let me know your thoughts via Twitter @Baptist_Simon or email on simonjbaptist@eiu.com.
Best regards,

Simon Baptist
Chief Economist