Politics  
 
There are three main issues, which will influence China politics in the future. First, political instability was likely to follow the transfer of power after 16th CPC national congress. Second, talents and political leaning of heir-Hu Jintao. Third, the uncertainty results from the Communist Partys plans to enlist private entrepreneurs as party members. 

Power succession in China is widely believed to be a transfer of political power from Jiang Zemin to his heir apparent Hu Jintao. Despite a seemingly simple process, in reality, the transition is rather complex. After Mao, power succession has become factional succession, meaning that succession is not only from one individual leader to another, but also from one faction to another. While individual leaders often face difficulty in choosing their heir apparent, intense factional conflicts often mean individual leaders having to sacrifice their proteges in order to maintain a power balance between factions. This is certainly true in the cases of Hu Yaobang and Zhao Ziyang. Both Hu and Zhao were Deng's handpicked successors; yet, when their radical reform policies met strong resistance from other political factions, Deng had to sacrifice them. The semi-retirement of Chinese premier Jiang Zeming and to his heir apparent, Hu Jintao

Mr. Hu, was confirmed as Communist Party chief for 16th CPC national congress in 2002. Mr. Hu, a hydraulic engineer by training, has thrived in the treacherous upper rungs of the Chinese Communist Party. With China facing major foreign-policy challenges as well as massive economic and social dislocation as it joins the World Trade Organization (WTO), the talents and political leanings of Mr. Hu and other members of the rising "fourth generation" of Chinese Communist leaders will shape the country for years to come. Since taking over as Party General Secretary at the 16th CPC, Hu and his premier, Wen Jiabao, proposed to set up a Harmonious Society which amis at lessening the inequality and changing the style of the GDP first and Welfare Second policies. What emerged in recent years is what President Hu calles the "China Model,", a systematic approach to national structure and development that combined dynamic economic growth, a free market energized by a vigorous private sector, unrelenting political and medial control, personal but not political freedoms, concern for the welfare of all citizens, cultural enlightenment, and a sysnergistic approach to diverse social issues.

In 16th CPC national congress, Jiang's theory of the Three Representatives is believed to write into CPC constitution. The theory, that the party must represent the foremost production forces, the most advanced culture and the broad interests of the masses, aims to broaden the base of the party by transforming it into a party of the whole people. Newly rich entrepreneurs, despised as exploiters for much of China's communist era, have become the new role models for the Communist Party, which once defined itself as the political party of the proletariat. 1.5 million private firms are playing in supporting the economy and absorbing workers laid off from ailing state companies. Analysts see the study as an attempt by the party to stop identifying itself only with the poor and socially deprived, and to become a representative of the rich and powerful, or those whom Mao saw as enemies.