China’s leaders declared a reform renewal last year, but nothing of significance occurred until the National People’s Congress concluded. Although the congress confirmed the appointments of important reformist technocrats Zhou Xiaochuan and Lou Jiwei, and Liu He took over the office of the Economics and Finance Leadership Small Group of the Communist Party, power was also carefully balanced with representatives of the state sector. Since the NPC meeting, however, there have been clear signs of a renewal of reform policy-making in both the Communist Party and the State Council. The progress of these initiatives should be carefully monitored.

As Beijing established a new state leadership at the 12th National People’s Congress and its companion meeting, the Chinese People’s Political Consultative Conference in March 2013, PRC officials continued to stress policy consistency toward Taiwan along lines laid out at the 18th Party Congress in November 2012. They expressed growing confidence that, as cross-Strait relations had already entered a “period of consolidation and deepening” and as the PRC’s growing national power earned it greater international influence, they had the ability to take more initiative in managing cross-Strait development and to cope with foreign “interference” in cross-Strait relations in a calm manner. That said, as one PRC legal scholar pointed out, the central issue regarding Taiwan is “the problem of the Republic of China,” that is both a political issue and a legal issue and at present without solution. The newly appointed head of the Taiwan Affairs Office, Zhang Zhijun, underscored the point when he stated, “as viewed from any perspective, there is no possibility the Mainland will accept the ‘Republic of China.’”

Appointments to PRC government posts at the 12th National People’s Congress in March 2013 completed the generational leadership transition that began at last fall’s 18th Party Congress. Analysis of the division of policy responsibilities among the new leadership provides insight into the structure and processes of policy-making under the new party general secretary, Xi Jinping.