Politics - Shanghai

December 12, 2009

Shanghai has been a political hub of China since the 20th century. The 1st National Congress of the Communist Party of China was held in Shanghai. In addition, many of China's top government officials in Beijing are known to have risen in Shanghai in the 1980s on a platform that was critical of the extreme leftism of the Cultural Revolution, giving them the tag "Shanghai Clique" during the 1990s. Many observers of Chinese politics view the more right-leaning Shanghai Clique as an opposing and competing faction of the current Chinese administration under President Hu Jintao and Premier Wen Jiabao. Shanghai's top jobs, the Party Chief and the position of Mayor, have always been prominent on a national scale. Four secretaries of municipal Party committee or mayors from Shanghai eventually went on to take prominent Central Government positions, including former President Jiang Zemin, former Premier Zhu Rongji, and current Vice-President Xi Jinping. The top administrative jobs are always appointed directly by the Central Government.

The current Shanghai government under Mayor Han Zheng has openly advocated transparency in the city's government. However, in previous years a complicated system of relationships between Shanghai's government, banks, and other civil institutions has been under scrutiny for corruption, motivated by faction politics in Beijing; these allegations from Beijing did not go anywhere until late 2006. Since Jiang's departure from office there has been a significant amount of clash between the local government in Shanghai and the Central People's Government, an evolving example of de facto Chinese federalism. The Shanghai government looks after almost all of the city's economic interests without interference from Beijing.

By 2006, Shanghai's actual level of autonomy has arguably surpassed that of any autonomous regions, raising alarm bells in Beijing. In September 2006, the Shanghai Communist Party Secretary Chen Liangyu, Shanghainese in origin and often clashing with central government officials, along with a number of his followers, were removed from their positions after a probe into the city's pension fund. Over a hundred investigators, sent by the Central Government, reportedly uncovered clues of money diversion from the city's pension fund to unapproved loans and investments. Chen's abrupt removal is viewed by many Chinese as a political manoeuvre by President Hu Jintao to further secure his power in the country, and retain administrative centralism. In March 2007 the central government appointed Xi Jinping, who is not a Shanghai native, to become the Party Secretary, the most powerful office in the city. Xi would eventually be transferred to work for the central government in Beijing and was replaced by Yu Zhengsheng in November 2007.

Source: Shanghai Politics, China Politics at Wikipedia.org