The uncertainty for German companies is growing

China has unveiled its new leadership for the next half decade. The occupation — six members of the Standing Committee, all well-known allies of China’s leader Xi Jinping — is even more loyal than many expected.

This confirms that Xi’s power is greater than ever. And it means that the policy for the next five years is geared towards continuity. The prospects for German companies in China are becoming even more difficult, with an almost guaranteed increase in statism and further international isolation. A more powerful Xi will be a major test for European diplomacy.

While the Chinese Communist Party’s five-yearly congress is not a place for formulating policy, the leadership reshuffle sends several clear messages for policy direction in the years to come.

>> Read about this: Xi Jinping cements his power beyond his third term