Xi touts party-led growth at predecessor Jiang Zemin’s birth centenary

BEIJING, 17 AUGUST 2026 —

Xi Honours Jiang Zemin’s Legacy Amid China’s Economic Policy Focus

Xi’s speech at Beijing’s Great Hall of the People marked his first public appearance in at least two weeks, following China’s annual summer leadership retreat in Beidaihe. The event followed the recent death of former Premier Zhu Rongji, who collaborated with Jiang on major economic reforms, including China’s entry into the World Trade Organization.

Senior officials, including Premier Li Qiang and Politburo Standing Committee members Wang Huning and Cai Qi, attended the ceremony. Former Premier Wen Jiabao and former Vice President Wang Qishan were also present. Xi credited Jiang, who rose to power after the 1989 Tiananmen Square crackdown, with implementing the party’s “correct decision” to stabilise China during what he termed a “severe political disturbance.”

Xi’s remarks echoed his 2022 eulogy for Jiang, where he framed the former leader as a defender of the party amid Western pressure and domestic upheaval. The speech reinforced Xi’s view that economic reform must remain under party leadership, aligning with his own governance model.

Jiang’s tenure saw the introduction of the “Theory of Three Represents,” which allowed private entrepreneurs to join the Communist Party as China’s market economy expanded. Xi praised this as a foundational contribution to China’s development.

Malaysia Market Impact

Analysts suggest Xi’s emphasis on party-led growth could signal continued state intervention in China’s economy, potentially affecting trade and investment flows with Malaysia. China remains Malaysia’s largest trading partner, with bilateral trade reaching RM455.4 billion ($98.6 billion) in 2023, according to Malaysia’s Ministry of International Trade and Industry.

The focus on stability and party control may reinforce China’s cautious approach to economic liberalisation, which could impact Malaysian exporters reliant on Chinese demand, particularly in electronics, palm oil, and commodities.

Sector and Company Specifics

Jiang’s reforms, including WTO accession, facilitated deeper economic ties between China and Malaysia. Major Malaysian conglomerates such as Petronas, Sime Darby, and Top Glove have significant operations in China, benefiting from decades of trade liberalisation.

The commemoration also underscores China’s ongoing emphasis on state-owned enterprises (SOEs), which compete with Malaysian firms in sectors like infrastructure and energy. Xi’s speech may signal continued support for SOEs, potentially influencing market dynamics in Southeast Asia.

Outlook

Xi’s reinforcement of Jiang’s legacy suggests a consolidation of the party’s role in economic policymaking, with potential implications for foreign investors and trading partners. Malaysia’s exposure to China’s economic policies may face increased scrutiny, particularly in sectors dependent on market access and regulatory stability.

Further policy signals from Beijing in the coming months could clarify China’s economic direction, impacting Malaysia’s trade and investment strategies. Details not yet available on specific policy adjustments following the commemoration.

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