China Congress Enshrines Private Property
By Juliana Liu and Tamora Vidaillet
BEIJING (Reuters) - China's parliament amended the constitution on Sunday to protect private property, a landmark move that waters down the core Communist ideology of the world's most populous nation.
But Premier Wen Jiabao, a populist and cautious reformer, has not forgotten the roots of the party, which was once the vanguard of the proletariat but now tries to be everything to everyone.
More than 99 percent of 2,896 delegates to the rubber-stamp National People's Congress approved as expected Wen's work report -- his first since taking office last March -- in which he championed workers and peasants.
"The Communist Party wants to represent everybody," Chinese political commentator Wu Jiaxiang said.
Five decades after sweeping to power, a period during which private property has been nationalized and bloody campaigns have been waged against landlords, China's parliament amended the constitution to add the clause: "Private property obtained legally is inviolable."
The constitution, changed for the fourth time since its adoption in 1982, put private property on an equal footing with public property -- a key plan to sustain economic growth.
Legislators approved the package of amendments with a vote of 2,863 in favor, 10 against and 17 abstentions.
"It's significant for a socialist regime that says it's still socialist or Communist to recognize more than before the role of the private economy in its development," a Western diplomat said.
"It's significant that they decided to say that private property is as legitimate as public ownership," he said. "It's in a way recognizing that exploitation is good. It's a big step."
Warning of a widening wealth gap that Beijing fears could spark social unrest, Wen outlined in his March 5 annual address steps to scrap farm taxes and boost subsidies in rural areas -- home to 800 million people.
He also pledged to create nine million new urban jobs and re-employ five million workers laid off from state firms that are struggling to stay in business as the private sector blossoms.
Jiang Zemin, who handed the presidency to Hu Jintao in March 2003 and the top job in the party in November 2002, joined China's pantheon of socialist greats when his "Three Represents" political theory was enshrined in the constitution.
"It's a departure from Marxism," Wu, the commentator, said of the Three Represents, which say the Communist Party stands for advanced productive forces, advanced culture and the interests of the majority of the Chinese people.
"It's also a recognition of Jiang Zemin thought after 13 years in power," Wu added.
Analysts say the amendment underscores Jiang's residual influence. He has retained his post as chairman of the state Central Military Commission -- China's top military job.
Jiang's political theory was added to the party charter in November 2002, paving the way for entrepreneurs to join.
The move to protect private property was unlikely to rest well with some aging cadres and Communist Party stalwarts, who have long referred to capitalists as "running dogs."
"There will be a few people who say 'You are betraying Chinese socialism by selling out to the capitalists'," said one Chinese analyst. "But they will be a very small few."
Parliament also approved the work report of Finance Minister Jin Renqing, in which he forecast a $38.6 billion budget deficit in 2004, the same as last year's record shortfall. He hopes to keep the red ink in check by cutting stimulus spending.
But delegates gasped when the high number of votes against top judge Xiao Yang's work report -- 586 against and 228 abstentions -- was announced. It still passed with 2,082 votes.
The 10-day session of parliament also passed a constitutional amendment to protect human rights for the first time.
But critics said the constitution still put the power of the party above all else and dismissed it as a tactical move to consolidate communist rule and maintain social stability.
Wen was scheduled to hold a news conference at 0900 GMT and China watchers will be listening to his every word on rival Taiwan for hints of any reprisals for the island's first referendum alongside presidential elections on March 20.
Wen, who will mark his first year in office on March 16, took a conciliatory approach to Taiwan in his opening-day speech by offering to resume talks with the island Beijing regards as a breakaway province that must be returned to the fold. (Additional reporting by Brian Rhoads, Godwin Chellam, John Ruwitch, Jonathan Ansfield and Cher Gao)
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