I don’t know how much faith to put in the following information (“China is a riddle wrapped in an enigma wrapped in a memecoin” said some famous wag (all quotes approximate)), but several people who read the tea leaves of the Chinese Communist Party say that President Xi Jinping has quietly been relieved of power.
Between late May and early June, Chinese President Xi Jinping simply disappeared. No parades. No spotlights. No front pages in People’s Daily that once displayed him daily. Instead, other senior Communist Party leaders hosted visiting dignitaries in Beijing’s grand halls.
According to CNN-News18, top intelligence officials say, “Xi Jinping’s absence is not unusual, and China has a history of sidelining prominent leaders.” The method is familiar — big names stay on paper, power moves quietly elsewhere.
When Xi reappeared in early June, it was not the spectacle the world expected. He sat down with Belarus President Alexander Lukashenko, but the setting was unusually small. Gone was the red-carpet flourish. “Xi appeared tired, distracted, and generally unwell at a meeting with the Belarusian President Alexander Lukashenko in early June,” noted the Belarusian presidential press service.
Even stranger, Xi’s personal security detail has been halved. His father’s grand mausoleum has lost its official status.
When they dishonor your ancestors, that’s a big sign things aren’t hunky dory.
And after a recent call with Donald Trump, Chinese state TV did something unheard of — it referred to Xi without any title. Later they patched it up, but the slip revealed cracks.
While Xi’s health and image fade, power appears to shift. General Zhang Youxia, who helped Xi secure an historic third term, is now rumoured to be calling the shots in the People’s Liberation Army. But he fell out with Xi soon after.
One source said: “Currently, real power lies with General Zhang Youxia, the First Vice Chairman of the Central Military Commission (CMC), who is backed by CCP seniors from the Hu Jintao faction.”
Dozens of generals loyal to Xi have vanished or been replaced. Rumours swirl about secret purges. “The Chinese Communist Party (CCP) has previously done this with three notable leaders, reducing their operational authority to mere ceremonial roles,” top intelligence officials told CNN-News18.
Whispers of a new face have also emerged. Wang Yang, who once served as a respected technocrat, is now spoken of as Xi’s likely replacement. Reports claim, “Wang Yang, recently appointed to lead the Chinese Communist Party, has been spoken of as a successor to Xi Jinping.”
Once lifted by Deng Xiaoping from obscurity, Wang represents reform. He is seen as calm, pro-market and less confrontational. Intelligence insiders told CNN-News18, “Wang Yang is being groomed as a reform-oriented future leader and technocrat.”
Back in 2022, the world watched as Xi’s predecessor Hu Jintao was guided off the stage at the Party Congress in full view of cameras. China’s Xinhua agency said Mr Hu felt unwell. But Hu looked reluctant. BBC’s Stephen McDonell noted, “Mr Hu, 79, appeared reluctant to move.” He even reached for Xi’s notes before the sitting President brushed him off.
You know that had to sting. But evidently Hu still had a lot of pull behind the scenes.
What many saw then as a power play now takes on new meaning. The silent exit of Hu — once a symbol of collective leadership — marked Xi’s total grip. Or so it seemed.
China’s economic engine is spluttering. Youth unemployment is stuck at 15 per cent. Real estate sits stagnant. Semiconductor plans have collapsed. National debt has ballooned to over $50 trillion. Local protests and factory unrest are flaring up.
Gregory W. Slayton, a former US diplomat, summed it up: “With over $50 trillion in total debt… and an unemployment rate in depression territory… it is not surprising that local riots, factory arsons and anti-government protests have flared all over China.”
Lei’s Real Talk (see here for a brief discussion of that channel) also sees signed that Xi has lost an internal power struggle:
Is Xi Jinping actually out of power? I’m not one capable of reading these tea leaves directly, but the one who can seem to think so. Indeed, rumors of a purge of Xi loyalists in the military date back to March.
Does this mean an invasion of Taiwan is off the table in the near term? Very possibly. In addition to leadership purges of the very forces tasked with carrying out such an invasion, Zhang Youxia evidently told Xi Jinping that his 2027 invasion deadline wasn’t practical. Then again, since Zhang was previously head of the PLA’s General Armaments Department, maybe he just wants to wait until China has better weapons.
Does it mean a less confrontational stance by China to the United States and the west in general? Again, very possibly. Hu Jintao was notably less confrontational than Xi, and possible presidential successor Wang Yang (as well as possible CCP premier pick Hu Chunhua) are considered Hu Jintao proteges.
Also, President Trump may the CCP shakeup as an opportunity to negotiate an even-more-favorable trade deal, and maybe clear up other points of friction (such as the South China Sea).
It will be interesting to see how it all shakes out…