Hello everyone, welcome to “News Perspective”. Today’s focus: Power struggle within the CCP generation after generation? Xi and Deng’s grudge revealed: Xi Zhongxun was persecuted, with Deng Xiaoping involved! US media reports that Qin Gang was demoted to work at a publishing house, dubbed as a misunderstanding; profits of top 100 real estate companies in the first half of the year dropped by 80%, and newly delivered properties in Hangzhou immediately faced price drops!
First, let’s look at the latest news about Qin Gang. Since the former Chinese Foreign Minister Qin Gang mysteriously disappeared last July, the world has been witnessing a drama resembling a search for Qin. The most sensational news came last December from the US political news website “Politico”, reporting that Qin Gang had “died in July at a Beijing military hospital, either by suicide or torture”. However, recent reports from US media suggest that Qin Gang is still alive.
On September 8, the Washington Post reported that according to two former US officials, Qin Gang had been assigned to work in a low-level position at the World Knowledge Publishing House under the supervision of the Chinese Foreign Ministry. This publishing house is located in a small alley in the center of Beijing, with a public bookstore full of memoirs of Chinese diplomats and books by the CCP leader Xi Jinping.
A reporter from the Washington Post visited the bookstore, where the staff said they had not heard of Qin Gang working there. A receptionist who answered the phone also stated that she did not know if the news was true. The Chinese Foreign Ministry did not respond to the Washington Post’s request for comment.
The report indicated that Qin Gang has “fallen out of favor”, but on the other hand, it also symbolizes that “he has escaped from a predicament” and may not become a prisoner at a lower level.
Quoting a former senior China analyst from the CIA, the report suggested that Qin Gang’s rapid rise had annoyed his colleagues, who felt he had surpassed them.
However, a recent report from the Washington Post has been deemed a misunderstanding. On September 10, Hong Kong’s Chinese newspaper “Ming Pao” reported that sources in Beijing pointed out that there is indeed an employee named “Qin Gang” at the World Knowledge Publishing House, but it is only a coincidence of name and surname, and the former Foreign Minister Qin Gang did not work at that publishing house.
Recently, Gao Zhikai, a high-ranking Chinese think tank official who once served as Deng Xiaoping’s translator, told reporters from the Peninsula TV that “Qin Gang lost his job due to corruption”. Gao mentioned that “in a certain place in China, you will never see him again”. These words have sparked various speculations.
On September 9, independent commentator Cai Shenkun wrote that he had received news from a friend of Qin Gang, claiming that “Qin Gang was tortured to death as early as last year, and now all the news is unreliable”. He mentioned that the Washington Post’s report is a way for the CCP to spread the news that Qin Gang is still alive through various means, making it difficult. If that’s the case, why not let Qin Gang make a public appearance!
The mystery of whether Qin Gang is alive or dead still attracts keen attention from the outside world, but the CCP deliberately turns such a simple matter into an unsolved puzzle, completely ignoring the concerns and doubts of the outside world. The CCP seems to be indifferent to public opinion, like a dead pig not afraid of boiling water.
Qin Gang’s last public appearance was on June 25 last year, after which he disappeared, with the CCP’s official announcement failing to provide any clarity on his whereabouts.
In July last year, it was announced officially that Qin Gang had been removed from the position of Foreign Minister. At the Third Plenary Session held in July this year, Qin Gang was relieved of his position as a Central Committee member, but still referred to as a “comrade”. It seems to indicate that he experienced a soft landing.
Before the incident, he was widely regarded as a trusted confidant of Xi Jinping, with a rapid rise in political ranks. In 2021, he became the Chinese Ambassador to the US; In October 2022, he was appointed as a Central Committee Member at the 20th National Congress of the CCP, and in December of the same year, he was appointed as the Foreign Minister of China. In March 2023, Qin Gang became the State Councilor of China, advancing to a vice-ministerial level, becoming the youngest “leader of the party and state” in the Chinese political arena at that time.
Qin Gang rose rapidly as a rising star in Chinese politics but fell just as quickly. It truly reflects the saying: “Watching him ascend the vermilion tower, watching him entertain guests, watching the tower collapse.”
Professor Ye Yaoyuan from the US speculated that the Communist Party does not clarify its statements to create a sense of terror, keeping everyone on edge. This is a form of ruling technique. The CCP must hope to maintain a sense of mystery to keep all officials on edge.
I believe that there may be another scenario. Despite the clamor from the outside world, if Qin Gang still does not make an appearance, it is highly likely that his situation is dire. Consider this possibility: the leader suddenly realizes that the trusted and favored subordinate has betrayed him, and in a fit of rage, decides to deal with him immediately.
Unexpectedly, the bigshots outside all remember this subordinate and keep asking about him. It is at this moment the leader realizes that no trial, no evidence collection, no following of procedures makes this way of dealing with things unacceptable even to democratic societies. So, the best course of action is no response.
The Qin Gang incident undoubtedly impacts the international image of the CCP, showing the world how political maneuvers within the CCP can play out, truly demonstrating the concept of “power corrupts”. Apart from the major upheaval in Qin Gang’s career trajectory, there are other significant policy changes causing turmoil, such as the strict lockdown measures during the pandemic and sudden easing of restrictions, as well as a series of economic policy reversals, including policies related to reforestation and agriculture.
As Laozi said, governing a great country is like cooking a small fish, but the CCP is governing a great country like baking a huge pancake—flipping and turning it repeatedly. It is worth pondering that a prominent figure like the Foreign Minister of China can disappear in the sight of the world without any explanation. In such a scenario, who in the CCP can consider themselves secure?
Moving on to the relationship between the Xi family and the Deng family. Some recent commentaries suggest that Xi Jinping is unlikely to revive Deng Xiaoping’s reform and opening-up policies due to a longstanding grudge between Xi Zhongxun, Xi Jinping’s father, and Deng Xiaoping.
During the 120th anniversary of Deng Xiaoping’s birth, Xi Jinping, as the CCP leader, held a memorial event as usual. While some descendants of Deng Xiaoping attended the event, the official news did not report on their statements.
Commentator Cai Shenkun stated that in 1952, then CCP leader Mao Zedong wanted to reduce local authorities’ power and called for Deng Xiaoping, Xi Zhongxun, and other local military officials to Beijing. Deng Xiaoping became the Vice Premier of the State Council, while Xi Zhongxun was appointed as the Minister of the CCP Central Propaganda Department. At that time, Liu Shaoqi was seen as Mao Zedong’s successor, and these local officials were part of the future succession lineup. Xi Zhongxun, who was nearly ten years younger than Deng Xiaoping, was considered a potential successor along with Deng.
In 1954, to balance various factions and consolidate his power, Mao Zedong instigated Gao Gang to oppose Liu Shaoqi. When Gao Gang sought to ally with Deng Xiaoping to confront Liu Shaoqi, Deng Xiaoping instead betrayed Gao Gang by informing Mao Zedong of his intentions, leading Mao to abandon Gao Gang.
In 1955, Xi Zhongxun, implicated in the fallout from Gao Gang’s case, was asked to clear himself of any guilt. Xi Zhongxun failed twice but managed to pass on the third attempt, with Deng Xiaoping being the person who prevented him from passing originally.
After the Eighth Party Congress in 1956, Deng Xiaoping became a member of the Politburo Standing Committee, while Xi Zhongxun was only a Central Committee member. In 1962, Xi Zhongxun was labeled the ringleader of an “anti-party group”, and at the time, Deng Xiaoping worked alongside Kang Sheng in purging Xi Zhongxun.
Even after the Cultural Revolution, the feud between Deng and Xi did not end. Deng Xiaoping initially disapproved of Xi Zhongxun’s return to politics, insisting that Xi align with him before making a comeback. In April 1978, despite Xi Zhongxun’s return, he could not return to Beijing, nor was he reinstated as Vice Premier, instead being sent to Guangdong province.
Due to disagreements between Deng Xiaoping and Chen Yun regarding the rehabilitation of Gao Gang, this impacted Xi Zhongxun, and the official exoneration notice for the “Xi Zhongxun Anti-Party Faction” was not formally issued until 1980.
Xi Zhongxun was approved to “rest in the south” by the central authorities in 1990, effectively being relocated and exiled from Beijing. It was only during the 50th anniversary of the CCP’s founding in 1999 that Xi Zhongxun returned to Beijing to participate in the celebrations, by which time Deng Xiaoping had already passed away.
Insiders from within the party system revealed that Xi Jinping has always held Deng Xiaoping responsible for the purging of Xi Zhongxun. Since Xi Jinping came to power, the Deng family has gradually been marginalized, including the severe sentencing and asset seizures of Wu Xiaohui, the former son-in-law of Deng Xiaoping who founded the Anbang Group, which indirectly impacted the Deng family.
At an event of the China Disabled Persons’ Federation held in Beijing on September 20, 2023, the honorary chairman of the federation, Deng Pufang, was replaced by a close ally of Xi Jinping. This transition signified Deng Pufang, who had been in control of the federation for half a lifetime, exiting the political stage entirely.
It is highly plausible that there exists a long-standing grudge between the Xi and Deng families, evident from the circumstances faced by the Deng family since Xi Jinping came into power. The power struggles within the upper echelons of the CCP have never ceased since its establishment, with each internal conflict being a life-or-death situation. However, I believe that Xi Jinping’s denial of Deng Xiaoping’s reform and opening-up policies is fundamentally rooted in his personal beliefs. He might truly believe that the regime he experienced during Mao Zedong’s era, with people’s communes, collective economies, communal dining, strict control over land, food, and personnel suits the ruling elite best. His repeated call for people to “get used to living tightly” and encouraging Chinese youth to return to rural areas to “endure hardships” suggests that the North Korean model is his ideal governing model.
The real estate industry, which has been dragging down the Chinese economy, remains sluggish in the first half of this year. The net profits of over 100 listed real estate companies decreased by 80%.
According to data monitored by the China Index Research Institute, in the first half of this year, the average operating income of 105 A-share and H-share listed real estate companies was 115.91 billion yuan, a decrease of 13.00% year-on-year; the average net profit was 145 million yuan, a decrease of 82.05% year-on-year.
Recently, several new residential areas in Hangzhou have seen “price drops” in their secondary market. Price drops refer to the market price falling below the issuance price of investment products. In the real estate market, it means the market price dropping below the opening price of the property.
Price drops in the Hangzhou real estate market are not a rare occurrence. There have been cases where landlords have sold properties at a price 1 million yuan lower within a month of buying them. Even the popular Asian Games Village recently faced a price drop, with both price and volume decreasing simultaneously. For example, the recently completed project, Riyao Zhi Cheng, which recorded the highest number of transactions in the city center in July with a price above 60,000 yuan per square meter. However, just one month later in August, the transaction price had fallen below 60,000 yuan, with most properties priced around 55,000 yuan, and the transaction volume dropping to 9 units.
On the online property platform, there are three listings in Riayao Zhi Cheng with asking prices as low as 48,000 yuan per square meter, with an owner reducing the price by 1 million yuan in the past month. Real estate agents have mentioned that in an oversupplied real estate market, it is challenging for properties facing price drops to stand out. Many properties facing price drops have seen continued price reductions compared to the first half of the year.
Netizens commented: “Don’t be too happy, if you buy now, you are just taking over someone else’s problems, and you might not even have any buyers behind you.” “Those buying now are probably just in need, otherwise they will definitely regret it. The downward spiral has just begun.”
Feel free to subscribe to our YouTube channel:
https://bit.ly/3IxaN09