◎ We believe that the expulsion of Fang Fenghui and Zhang Yang from the CCP is connected with the recent purge of Interpol chief Meng Hongwei.
◎ There are hints that the Meng Hongwei case is connected with a “soft coup” against the Xi leadership.
Risk Watch: China’s Social Security and Taxation Changes Could Spark Wave of Business Failure and Unemployment
◎ The tax and social security reform will sharply increase the financial burden of Chinese firms.
◎ Based on our research and understanding of the CCP, the more tightly it controls society, the more it feels imperiled.
◎ China’s economy would be in a precarious position if U.S. tariffs completely eliminate the trade deficit.
◎ The CCP is putting on a show for the Chinese people with its retaliatory duties.
◎ The outbreak of the Sino-U.S. trade war has exposed the CCP’s fear that America would escalate their conflicts on the ideological front.
◎ The trade war forces Xi and the CCP to face an intractable political contradiction.
◎ The exchange between the finance ministry and central bank exposes deeply-rooted institutional problems in the Chinese regime.
◎ Xi’s policies and personnel changes have combined to curb the PLAC’s authority and weaken its influence.
◎ The CCP is adjusting its propaganda to lay the foundation for subsequent trade negotiations with America.
◎ The CCP would find it increasingly difficult to exert control over Chinese society if it cannot pay civil servants.
◎ According to reports, Guangdong mayor Ma Xingrui was recently in Hainan Province making preparations to take over the post of Party secretary.