October 15, 2007 (LPAC)--Opening the 17th Party Congress of the Chinese Communist Party today, General Secretary Hu Jintao made his report on the previous five years, and indicated the direction of the coming five years. Under Hu, there will be an emphasis on resolving many of the major social and economic problems that rapid export-led industrial development has brought in its wake, in particular, the growing inequities between rich and poor, and between regions. In the panoply of Chinese development from Mao, to Deng Xiaoping, to Jiang Zemin, Hu intends to make his mark in beginning to resolve these issues, under the slogan of "building a moderately prosperous society in all respects" by "applying a scientific outlook on development."

While maintaining growth, there will be more emphasis on "social development on the basis of economic growth." The slogan of "improving people's livelihood," (which resembles the fourth principle of Sun Yat-Sen) was referred to a number of times. While listing China's achievements in economic development over recent years, Hu underlined the tremendous social dislocation of traditional society, and the stark social and economic inequities that this had created.

Included in the new reorientation of the policy are: improving the environment, reforming and expanding education, encouraging entrepreneurship and innovation, reform of income distribution, accelerating the development of the social security system, improving the health care system, and improving "social management and public security."

In economy, Hu place an emphasis on innovation and basic research. He called for further reform of the financial system, including strengthening risk control in the markets. He indicated that the Chinese currency would be made more flexible with regard to international currencies, but gave no timetable. Hu talked about the need for modernization and innovation in the Chinese military, which is labeled "revolution in military affairs with Chinese characteristics."

Hu reiterated the national commitment to reunification, and an absolute opposition to any attempt on the part of Taiwan to move toward independence. He warned that the recent moves by Taiwan's leader had created a tense situation. Hu reiterated, for the first time at a Party Congress, China's willingness to talk with any party from Taiwan on any topic as long as they accept the principle of "one China."

The report by Hu Jintao will be studied and discussed during the week-long Congress, and revised and published at the end of the Congress. There will also be changes made in the Party Constitution pointing in the direction that Hu indicated. Hu also underlined the need to fight corruption, an endemic problem exacerbated by rapid growth in China during the last years, and encouraged the appointment of non-Party members to high government posts. Observers will be especially interested in the awaited leadership changes, where Hu will consolidate the policy shift by a final transfer of power to new leaders more in tune with the new direction.