In a rare move, Chinese Communist Party leader Xi Jinping chaired a meeting of the Politburo to review the “Regulations on the Work of the Central Decision-Making and Coordinating Institutions.” According to some Japanese media figures, this indicates that Xi Jinping’s personally designed decision-making system is undergoing scrutiny amid economic hardships, with the national security system being at the forefront.
Veteran media personality Katsuji Nakazawa wrote in the Nikkei newspaper on July 3, expressing that Xi Jinping is facing difficulties due to the conflict between national security and the harsh realities in China.
Despite signs of Xi Jinping accumulating so-called “ultimate power,” dating back to 2013 when he established the Central Policy Coordination and Decision-Making System, there are now signs of instability within it.
The basis for this observation is the official Communist Party announcement on June 30, stating that the Politburo convened a meeting to review the “Regulations on the Work of the Central Decision-Making and Coordinating Institutions.” The meeting emphasized the need for “top-level design and comprehensive coordination” to ensure that coordination does not replace implementation, and implementation is kept within appropriate limits.
Nakazawa noted that the new regulations will define the scope of authority for these institutions to prevent overstepping. Making such significant decisions prior to the next (fourth) plenary session of the Central Committee is unusual.
The article questions the meaning of the term “overstepping,” highlighting the significant changes Xi Jinping has brought to the Communist Party’s decision-making system since coming to power in 2012.
According to publicly available information, the “Central Decision-Making and Coordinating Institutions” are mainly led by Xi Jinping and include over ten central committees or leadership groups such as the Deepening Reform Committee, National Security Committee, Financial and Economic Committee, Foreign Affairs Committee, Audit Committee, and Institutional Setup Committee.
Of particular interest are two groups established during the 18th Central Committee meeting in November 2013: the National Security Commission and the Central Comprehensive Deepening Reform Leading Group, the latter upgraded to the Central Comprehensive Deepening Reform Committee in March 2018.
The article argues that the Deepening Reform Committee and the National Security Commission have had a profound impact on the economy and other affairs. This “group rule” has concentrated power in Xi Jinping’s hands, creating a dilemma on how to strike a balance between economic and national security priorities.
The elevation of the Communist Party’s national security status has undergone a transformative process. While Xi Jinping established the National Security Commission upon taking office, the national security agencies remained relatively in the background during the first decade of his rule. The shift occurred when Xi Jinping was reelected as State President in March 2023 and his loyalists gained full control.
Since Chen Yixin took office as the new Minister of National Security, the Chinese Communist Party has been cracking down on foreign consulting companies since 2023, conducting raids and detaining employees. The Wall Street Journal quoted insiders saying Xi Jinping viewed foreign investment supervision as a “blind spot” and appointed National Security Chief Chen Yixin to address this issue.
After the revised “Counter-Espionage Law” took effect on July 1, 2023, authorities launched a mass campaign of “anti-spy” actions. On August 1, the Communist Party’s National Security Department opened its official WeChat account, regularly publicizing the exposure of espionage cases involving the United States and taking a firm stance on diplomatic and financial issues. Many observers believe that Chen Yixin’s high-profile actions have inevitably ruffled feathers within various departments, including other influential members of Xi’s loyalists.
Nakazawa also quoted sources from Beijing mentioning criticisms within the Communist Party about a decision-making system that is out of touch with the harsh realities of ordinary people’s lives.
He mentioned a bold warning from Wang Jisi, the Dean of the School of International Relations at Peking University, asserting the importance of national security while stressing the need to recognize its boundaries. This article, published on a foreign think tank’s website, has surprisingly not been censored.
Nakazawa stated that an expert knowledgeable about Chinese politics pointed out that Xi Jinping’s rapid consolidation of power has “passed its peak.” The Politburo’s decision to scrutinize the policy coordination and decision-making system that allowed Xi Jinping to monopolize power may also hint at a return to traditional collective leadership.
Lai Rongwei, the Executive Director of the Taiwan Inspiration Association (TIA), previously told Dajiyuan that the timing of this regulation’s emergence deserves attention. It indicates a trend towards collective leadership, aiming to have some form of coordination before making decisions. This undoubtedly impacts Xi Jinping’s governance, with upcoming meetings such as the Beidaihe Conference in the summer and others in the fall. Therefore, this signals factional struggles within the Chinese Communist Party.