SinoInsight 1
According to various media reports, Liu He, a new Politburo member and director of the Leading Group for Financial and Economic Affairs, could be visiting Washington D.C. sometime between Feb. 27 to March 2.
Some of the reports say Xi Jinping dispatched Liu to D.C. to solve trade disputes between China and the United States before the Two Sessions begin.
We have some questions about Liu’s travel arrangements.
OUR TAKE
1. We earlier analyzed that Liu He may become a State Council vice premier that oversees finance at the Two Sessions (March 3 to March 15). But presently, Liu only has Party positions and no state office. So in what capacity will American officials hold talks with Liu?
2. Sino-U.S. trade relations are important and tensions are rising. But at present, trade problems between the two countries don’t appear to be so dire that negotiations must take place before the Two Sessions. So why can’t Xi wait until Liu is officially appointed to his state post before sending him to D.C.?
3. The Third Plenum will be held from Feb. 26 to Feb. 28. According to some reports, Liu He is due in D.C. on Feb. 27. But Liu, a Politburo member, is also expected to attend the Third Plenum. Presuming information about Liu’s itinerary is accurate, what could be so urgent in Sino-U.S. relations that would compel Xi to take the irregular measure of excusing a Politburo member from a plenary session just to confer in person with American officials?
SinoInsight 2
Yang Jing, secretary general of China’s State Council, was removed from his posts and demoted from deputy state to ministerial level, according to a notice carried in state media on Feb. 24. He is also put on probation in the Party for a year. Yang’s fate sharply contrasts with that of Anbang Group chairman Wu Xiaohui.
OUR TAKE
The notice on Yang states that he “confessed to his wrongdoing and expressed remorse.” We believe that Xi is signaling through his handling of Yang’s case that officials who surrender and fall in line with Xi can receive light punishment. But characters like Wu Xiaohui, who refused to listen to warnings from higher authorities and continue to stir trouble, will be purged even if they are Party princelings.