During U.S. treasury secretary Janet Yellen’s four-day trip to Beijing, she met with former Chinese Vice Premier Liu He on July 7. This meeting is considered a major highlight of Ms. Yellen’s visit to China, as many regard the retired Mr. Liu as a pro-U.S. official. They interpret it as Beijing’s wish to change its course and reestablish a friendly relationship with the United States. However, a political analyst focusing on China affairs believes that was not the reason Chinese leader Xi Jinping chose to have Mr. Liu meet with Ms. Yellen.
Ms. Yellen’s visit to China comes against a backdrop of strained relations between the two nations. As the U.S. secretary of the treasury, her primary objective is to promote dialogue and seek opportunities for improved cooperation, with a specific focus on areas such as trade, investment, and financial stability. Additionally, she seeks to explore opportunities for collaboration in tackling shared challenges, including climate change and global economic recovery.
Mr. Liu has long served as the CCP’s financial think tank, and has long been Mr. Xi’s most trusted economic adviser. After becoming the vice premier in charge of China’s finance, technology and industry in March 2018, Mr. Liu had represented China in trade negotiations with the United States multiple times.
In January 2020, Mr. Liu went to the United States and signed the first phase of the trade agreement with then-U.S. President Donald Trump. While the agreement was not fully implemented, it provided China with a brief reprieve from the trade war. This was the only economic agreement signed between the United States and China in the past three years.
Analyst: Two Major Reasons for Xi’s Reactivation of Liu He
According to Lu Yuanxing, a U.S.-based political and economic analyst who used to serve as a marketing executive for a Chinese company, there are two factors behind Xi’s reappointment of the retired Liu He.In a July 7 interview with The Epoch Times, Mr. Lu said one reason is that Mr. Xi has no other choices.
“Among the current top officials of the CCP, Liu He is relatively knowledgeable about the economy or has some experience in this area, so Xi Jinping chose him when no one else is qualified,” he said.
He continued to explain that there is more to the situation than this reason.
“By definition, China’s economy-related work is actually the responsibility of Premier Li Qiang. But now Xi Jinping desires to be the sole authority figure and does not want the premier to steal the limelight. For instance, Li Qiang didn’t use a dedicated plane during the official visit, but rather a chartered flight, deliberately lowering the travel standard by one level. In fact, it was a sign that Xi Jinping has overpowered Li to show his authority, as Xi doesn’t like the feeling that the premier is almost equal to him in power.”
Under such circumstances, combined with the factor that Mr. Xi had no one else to choose from, he can only look for candidates from retirees, Mr. Lu said.
He further pointed out that retired officials are unlikely to have a significant impact or threat on Mr. Xi’s power. In contrast, they are more controllable from Mr. Xi’s perspective. Therefore, Mr. Xi feels more at ease with a retired official, which is the second reason Mr. Xi chose to use Mr. Liu.
Some argue that Mr. Liu is pro-U.S. and has played an important role in the U.S.-China trade talks in past. Even though Liu has retired, Mr. Xi still needs someone like him to engage and negotiate with the United States. They interpret Mr. Xi’s reactivation of Mr. Liu as a gesture to restore U.S.–China relations.
Mr. Lu disagrees with this view.
“The lower-level CCP officials have to be mindful of the attitudes of higher-ranking officials. The CCP’s stance on U.S.-China relations really depends on Xi Jinping’s attitude,” he said. “If Xi wants to adopt a pro-U.S. stance, all his appointees will invariably align with him. Only those affiliated with his political opponents might seek to oppose it. But if Xi does not want to be pro-U.S., it is meaningless if there is only one official who is pro-U.S. in heart, as he would not dare to go against Xi’s wishes. Therefore, Liu He’s pro-U.S. stance is not the reason that has led Xi to reinstate him. Liu lacks the authority to make decisions regarding the most fundamental policy directions, which all depends on Xi Jinping’s attitude.”
