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China reforms to indicate political direction: MAC

TAIPEI--Reforms in China's political system will serve as an indicator of the direction of that nation's politics, the Mainland Affairs Council (MAC) said yesterday.

In a report on the situation in China in the third quarter, Taiwan's top China policy charter said the Communist Party of the giant neighbor across the Taiwan Strait is preparing to hold its 18th National Congress, in which a once-in-a-decade leadership transition will start.

The report noted that both Chinese President Hu Jintao and Premier Wen Jiabao have spoken about issues related to the reform of the political system and that Xi Jinping, Hu's expected successor, has reportedly met people who advocate reforms.

The report said China's economy is gradually returning to stability, laying the basis for a rebound in the fourth quarter.

But the widening gap between rich and poor, increasing inflation and the unequal distribution of social resources will pose challenges to Hu's goal of a harmonious society.

On China's policy toward Taiwan, the MAC said in its report that China has stressed recently that this policy will be continuous and maintain the trend of peaceful development.

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