ABSTRACT
China's quiet transition into the post-Deng era has disproved the speculations of impending dramatic leadership struggles and regional instability. Some dramatic scenarios were based on the link between a divided and immobilised central leadership and regional groupings breaking away from central control. The kernel of truth in these speculations is that the central government is indeed becoming less interventionist and that provincial power and influence are increasing. One of the reasons for China's apparent stability is that the two are closely linked. Essentially, a new relationship between the central and regional power structures is emerging. As the localities increase their regulatory power and independence, the centre has reacted not in an antagonistic fashion, but rather by coopting provincial leaders and negotiating issues with provinces in a more predictable manner. This has been evident since 1992 and has been confirmed by the fifteenth National Party Congress in September 1997. The much quoted team approach of the Chinese leadership not only covers central stake holders such as party, military and government, but also includes a coordination between central and local interests.
