I don't think this has all that a huge impact. It does signify a few things, but it's things that have been happening for a long time now, and this statue is more like a belated "official endorsement" than a change in policy.
First of all, the statue, judging from the picture, is in front of a building. What is that building? Might not it be more appropriately said that the Confucius statue is placed in front of that building than in Tiananmen Square?
Secondly, China has been moving away from the radicalism of the Cultural Revolution for, what, 30+ years now? Most of the CCP leadership has been changed 2 or 3 times already. However, it seems that many people think the CCP still subscribes to Mao's philosophy, as if in the 30+ years of tremendous changes in China, the CCP had remained static. That is, of course, nonsense.
Finally, I am more inclined to view this as a renewed exploration into China's cultural history in order to meet modern-day challenges. I would not be surprised if the statue of Confucius was just the first of many other famous historical figures in the area of Tiananmen Square.
That was the first thing I wondered: the location of the statue on Tiananmen. It's apparently infront of the China National Museum, on the north-east side of the Square. It could mean a lot less than some of us are assuming here. However the shift in governing paradigm is very real, shifting to a more Confucian, more responsible and more open to public opinion type of governance.
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