Can China Make Big Changes?

Can China Make Big Changes?

2022-11-22 • Updated

On Sunday, October 16, the 20th Congress of the Communist Party of China will take place. This rare event occurs every five years and plays a significant role in the world’s second largest economy. Let’s discuss why this event is worth following.

About the event

The 20th National Congress of the Communist Party of China (CCP) is convened on Sunday in Beijing. The event, which occurs every five years and usually lasts a few days, includes announcements and resolutions and eventually unveils a new Standing Committee, a small group of 25 core leaders in the Politburo. Traditionally, the top leadership is chosen at the party congress, including the General Secretary and Prime Minister.

The main questions that the party will discuss are:

  • Economic issues and future policy.
  • The analysis of top leaders’ results.
  • The domestic policy prospects.

The decisions that the party will end up with can also influence other spheres.


The 19th Congress of the Communist Party of China, October 18, 2017.©XINHUA

What is expected?

The main thing that people are waiting for is the news about Xi Jinping’s leadership. It’s believed that he will be re-elected for a 3rd term in office. Under his leadership, many complex problems were solved that remained unresolved for a long time. For example, a the significant success was achieved in the fight against corruption, which was consolidated everywhere.

Then, the party should discuss several economic issues. Economic growth has been hampered by an intensifying trade and ideological battle with the United States that sometimes threatens to escalate into actual conflict. Also, due to the Russian-Ukrainian conflict, big Chinese businessmen and bankers are willing to occupy the niches in Russian businesses that have opened up after the departure of Western firms. However, they act cautiously, fearing falling under secondary US and EU sanctions.

Another essential problem to discuss is Covid-19. Many of the Chinese hope that China will move away from the "COVID zero" policy as it dramatically delays supply and production. Top management is aware of the economic costs but so far, it has been reluctant to change course. The Chinese government mentioned overall planning, which coordinates COVID-19 epidemic prevention and economic and social development but also insisted on normalizing China's measures to combat COVID pretty strictly. However, the past year has shown that these goals directly contradict each other, and continuing the current course of epidemic prevention will inevitably sacrifice economic stability and development.

What about the Chinese Yuan?

Possible changes in domestic policy can significantly affect the national currency. The yuan has also been under pressure from the rising dollar lately and has reached highs in the past six months. USDCNH broke through the psychologically impressive level of 7, marking a significant technical development for the currency pair.



This rare event may be a dark horse in today’s world situation, as changes in Chinese politics can influence CNH pairs and stocks. Follow it, and gain fundamental analysis skills.


Will USDJPY slide lower in 2023?
Will USDJPY slide lower in 2023?

Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?

BoC Rates Could Alter The Trend on USDCAD and others
BoC Rates Could Alter The Trend on USDCAD and others

Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.

What lies ahead for gold?
What lies ahead for gold?

As you must already know, the direction of Gold is mainly dependent on the Price action of DXY (US Dollar index). So first, we take a look at the US Dollar index.

Latest news

European Currencies Ahead of the Banks' Statements
European Currencies Ahead of the Banks' Statements

On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.

Will the FOMC Surprise the Markets?
Will the FOMC Surprise the Markets?

The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates?

What awaits the Oil Market in February?
What awaits the Oil Market in February?

Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera