Chinese Communist Party big boss Xi Jinping broke with a 25-year tradition by unveiling a new senior leadership group that includes no clear potential heirs, raising the chances bigly that he will stay in office beyond 2022.
The consolidation of power in the hands of one man is a departure from the collective leadership that guided China through decades of historical and impressive economic growth and consumer stability. Today's top leadership reveal is a return to China's cultural code of imperial command.
What does it mean for global business? How will he use this power? Does the C-Suite commit or retreat?
As always, global business and the Davos crowd hopes a stronger Xi will now be able to push through bold economic and financial reforms.
I don't see it.
Xi is beholden to China and not the shareholders of the world's Western-based blue chip companies.
Xi's new leadership enhancement does little to change the ethos that to invest and manage a business in China you need fortitude, patience, and need to think in China for China. Capital controls and other investment barriers remain, while debt soars.
If you sell a commodity and consumer packaged good and service, all is well, and there will be continued access and success in the Middle Kingdom.
If you are a bank, a tech company, an oil exploration concern, a biotech startup, a developer of new energy vehicles, you best buckle-up. Your business model is seen as a challenge to where Xi wants to take China, and the Great Wall just got higher.
What global business needs to know about Xi
