Historical the significance of this step, both for China itself and for the whole world as a whole, is difficult to overestimate. In fact, a constitutional monarchy is arising in the Celestial Empire and the institution of the change of power is canceled. The current chairman of the CCP, Xi Jinping, can then remain in power until 2032.
There are several reasons for such a move by China. These are internal political reasons - C just does not have time to complete his large-scale reforms, and foreign policy reasons - the confrontation with the United States.