The coming ideological turn in US policy on China; Xi strengthens control over the CCP regime

SinoInsight 1
Personnel reshuffles in the Chinese regime have proceeded nonstop since the big reshuffle at the Two Sessions meeting in March.

  • Since July, Organization Department chiefs in six provinces (Hubei, Shanghai, Sichuan, Zhejiang, Anhui, Guangxi) have been replaced.
  • Since the start of 2018, several Party secretaries of provincial Political and Legal Affairs Commissions (PLAC) and United Front Work Departments (UFWD) have been reshuffled; in some instances, the head of the provincial PLAC became the new provincial UFWD chief, and vice versa.
  • At least seven provincial PLACs (Hainan, Ningxia, Henan, Shaanxi, Gansu, Qinghai, Guizhou) have been seen leadership changes this year. Two provinces gained a new PLAC chief, while five provinces are currently without a PLAC head.
  • At least eight provinces (Hainan, Heilongjiang, Jiangsu, Shanxi, Guangxi, Guangdong, Shanghai, Sichuan) have replaced their UFWD head.
  • Since the start of the year, at least 15 deputy provincial governors concurrently held the appointment of provincial Public Security Bureau (PSB) chief. Eight of the 15 deputy provincial governors were the PSB head of their province before being promoted; six were transferred in from other provinces; and one was dispatched from the Ministry of Public Security (MPS).
  • In August, the MPS added a new deputy minister, political department director, and a ministry assistant. With these personnel movements, Xi Jinping has swapped out virtually all MPS staff since taking office.
  • On Aug. 28, the central government sent overseers to inspect nine “sweeping black” groups that were tasked with clamping down on organized crime in the provinces.

OUR TAKE

Xi Jinping’s personnel reshuffling appears to be aimed at cutting off officials from their established power networks. The domestic security and legal apparatus (PLAC, MPS, PSB, etc.) has been most affected by the reshuffling. We believe that the domestic security and legal apparatus personnel “clean out” is a continuation of Xi’s efforts to wrestle control over the apparatus from the Jiang Zemin faction.

Xi managed to install trusted officials into key domestic security positions and begin to consolidate fuller control over internal security matters at the 19th Party Congress last year. The anti-organized crime campaign launched at the start of 2018 is aimed at tackling the control problem at the grassroots by purging security and legal affairs officials who serve as “protective umbrellas” for local mafia.


SinoInsight 2
On Aug. 28, Hong Kong media reported that Southern Theater Command political commissar Wei Liang and Central Military Commission Deputy Chief of the Joint Staff Xu Fenlin were demoted and made to retire from the military. Wei and Xu were members of the 18th Central Committee of the Chinese Communist Party (CCP), but were not part of the 19th Central Committee. Wei Liang was absent from a high-level military meeting in August.

Recently, Hong Kong media also speculated that two other senior commanders, Yang Hui (Eastern Theatre Command deputy commander and chief of staff) and Liu Xiaowu (Western Theater Command deputy commander), were being investigated.

OUR TAKE
1. The rumors, if proven to be accurate, would corroborate our analysis that Xi Jinping may be technically in control of the military, but he still faces much internal opposition from the People’s Liberation Army. Hence Xi has to continually purge the ranks; Xi’s remark that “the anti-corruption struggle in the military won’t change direction” at a meeting of the CMC from Aug. 18 to Aug. 19 is revealing of Xi’s intentions.

2. Based on our research, Xu Fenlin and Liu Xiaowu both served in the Guangzhou Military Region before Xi Jinping launched a sweeping military reform in 2015. Zhang Yang, the former CMC Political Department head who committed suicide in November 2017, had previously served with Xu and Liu in the Guangzhou Military Region (Political Department director and political commissar) before he was transferred to the CMC in October 2012.

Wei Liang succeeded Zhang Yang as Guangzhou Military Region political commissar. At the time, the Jiang faction oversaw the promotion of senior commanders and generals.

3. After President Donald Trump announced tariffs against China on June 15, we analyzed that Xi Jinping would face stiff opposition from inside the Party. Thus, it is inevitable that Xi would move to strengthen his control over the military, society, and the CCP.

“The breadth of SinoInsider’s insights—from economics through the military to governance, all underpinned by unparalleled reporting on the people in charge—is stunning. In my over fifty years of in-depth reading on the PRC, unclassified and classified, SinoInsider is in a class all by itself.”
James Newman, Former U.S. Navy cryptologist
“Unique insights are available frequently from the reports of Sinoinsider.”
Michael Pillsbury, Senior Fellow for China Strategy, The Heritage Foundation
“Thank you for your information and analysis. Very useful.”
Prof. Ravni Thakur, University of Delhi, India
“SinoInsider’s research has helped me with investing in or getting out of Chinese companies.”
Charles Nelson, Managing Director, Murdock Capital Partners
“I value SinoInsider because of its always brilliant articles touching on, to name just a few, CCP history, current trends, and factional politics. Its concise and incisive analysis — absent the cliches that dominate China policy discussions in DC and U.S. corporate boardrooms — also represents a major contribution to the history of our era by clearly defining the threat the CCP poses to American peace and prosperity and global stability. I am grateful to SinoInsider — long may it thrive!”
Lee Smith, Author and journalist
“Your publication insights tremendously help us complete our regular analysis on in-depth issues of major importance. ”
Ms. Nicoleta Buracinschi, Embassy of Romania to the People’s Republic of China
"I’m a very happy, satisfied subscriber to your service and all the deep information it provides to increase our understanding. SinoInsider is profoundly helping to alter the public landscape when it comes to the PRC."
James Newman, Former U.S. Navy cryptologist
“Prof. Ming’s information about the Sino-U.S. trade war is invaluable for us in Taiwan’s technology industry. Our company basically acted on Prof. Ming’s predictions and enlarged our scale and enriched our product lines. That allowed us to deal capably with larger orders from China in 2019. ”
Mr. Chiu, Realtek R&D Center
“I am following China’s growing involvement in the Middle East, seeking to gain a better understanding of China itself and the impact of domestic constraints on its foreign policy. I have found SinoInsider quite helpful in expanding my knowledge and enriching my understanding of the issues at stake.”
Ehud Yaari, Lafer International Fellow, The Washington Institute
“SinoInsider’s research on the CCP examines every detail in great depth and is a very valuable reference. Foreign researchers will find SinoInsider’s research helpful in understanding what is really going on with the CCP and China. ”
Baterdene, Researcher, The National Institute for Security Studies (Mongolian)
“The forecasts of Prof. Chu-cheng Ming and the SinoInsider team are an invaluable resource in guiding our news reporting direction and anticipating the next moves of the Chinese and Hong Kong governments.”
Chan Miu-ling, Radio Television Hong Kong China Team Deputy Leader
“SinoInsider always publishes interesting and provocative work on Chinese elite politics. It is very worthwhile to follow the work of SinoInsider to get their take on factional struggles in particular.”
Lee Jones, Reader in International Politics, Queen Mary University of London
“[SinoInsider has] been very useful in my class on American foreign policy because it contradicts the widely accepted argument that the U.S. should work cooperatively with China. And the whole point of the course is to expose students to conflicting approaches to contemporary major problems.”
Roy Licklider, Adjunct Professor of Political Science, Columbia University
“As a China-based journalist, SinoInsider is to me a very reliable source of information to understand deeply how the CCP works and learn more about the factional struggle and challenges that Xi Jinping may face. ”
Sebastien Ricci, AFP correspondent for China & Mongolia
“SinoInsider offers an interesting perspective on the Sino-U.S. trade war and North Korea. Their predictions are often accurate, which is definitely very helpful.”
Sebastien Ricci, AFP correspondent for China & Mongolia
“I have found SinoInsider to provide much greater depth and breadth of coverage with regard to developments in China. The subtlety of the descriptions of China's policy/political processes is absent from traditional media channels.”
John Lipsky, Peter G. Peterson Distinguished Scholar, Kissinger Center for Global Affairs
“My teaching at Cambridge and policy analysis for the UK audience have been informed by insights from your analyzes. ”
Dr Kun-Chin Lin, University Lecturer in Politics,
Deputy Director of the Centre for Geopolitics, Cambridge University
" SinoInsider's in-depth and nuanced analysis of Party dynamics is an excellent template to train future Sinologists with a clear understanding that what happens in the Party matters."
Stephen Nagy, Senior Associate Professor, International Christian University
“ I find Sinoinsider particularly helpful in instructing students about the complexities of Chinese politics and what elite competition means for the future of the US-China relationship.”
Howard Sanborn, Professor, Virginia Military Institute
“SinoInsider has been one of my most useful (and enjoyable) resources”
James Newman, Former U.S. Navy cryptologist
“Professor Ming and his team’s analyses of current affairs are very far-sighted and directionally accurate. In the present media environment where it is harder to distinguish between real and fake information, SinoInsider’s professional perspectives are much needed to make sense of a perilous and unpredictable world. ”
Liu Cheng-chuan, Professor Emeritus, National Chiayi University
“Since the 2019 Hong Kong anti-extradition movement, I have periodically engaged with articles from SinoInsider. SinoInsider’s insights have deepened my understanding of the Chinese Communist Party’s regime. These resources have been invaluable in navigating the opaque world of Chinese elite politics, significantly enhancing my commentary on my Hong Kong online radio program, HK Peanut.”
Andrew To Kwan-hang, former chairman of the League of Social Democrats and founder of HK Peanut