Xi Jinping’s power grab sparks key-man risk

Scrapping the two term limit for China's president will usher in more political stability, say foreign investors. But there are long-term risks of which they need to be aware.

Xi Jinping’s power grab sparks key-man risk

Foreign investors appear relaxed about China’s proposed constitutional amendment to the president’s two-term limit, but political experts believe the move could engender more uncertainty over the longer term.

The Communist Party of China announced several constitutional changes the first since 2004 on February 25. While they do not directly impact economic reforms, foreign investors believe the amendments represents a further consolidation of power by President Xi Jinping.

As such, it’s an...

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