On the eve of the G-20 summit, Chinese leader Xi Jinping spoke about challenges within the Chinese Communist Party (CCP) during a meeting with senior cadres in the Politburo. Meanwhile, the state-run, Beijing-friendly Tsinghua University released a report concluding that the U.S.–China trade dispute would have minimal impact on the Chinese economy.
Both moves suggest that Xi would not make major concessions when he meets with U.S. President Donald Trump at the upcoming summit in Japan, China observers said.
Trump and Xi are expected to meet on June 29, on the second day of the summit. It will be their first face-to-face meeting after U.S.–China trade talks broke down in early May. U.S. officials alleged that Beijing had backtracked on agreements that both parties made during previous talks.
Party Instability
The Party’s Politburo, a 25-member body, organized a group study session on June 24, where Xi gave remarks.“Factors that may weaken the Party exist at every minute ... the risks that can shake the foundation of the Party are everywhere,” Xi said.
Xi didn’t make any allusions to external threats such as the current trade dispute; he continually emphasized that problems exist from within.“My understanding is that the infighting between different factions right now is very intense,” U.S.-based China commentator Tang Jingyuan told the Epoch Times.
Tang’s observation is that the Party has two groups of senior cadres who are against making any compromises in the U.S.–China trade dispute.
One group believes that the CCP doesn’t need to cooperate with the United States. Another group, comprised of those associated with officials who have been sacked amid Xi’s anti-corruption campaign, are opposed to Xi’s leadership. This faction believes that fruitful cooperation between the United States and China would benefit Xi, and hence, don’t support a resolution to the trade war.
In this context, Xi’s remarks indicate that he needs to satisfy these groups in order to maintain his leadership position, Tang said.
Tsinghua Think Tank Report
Meanwhile, the Academic Center for China’s Economic Practice and Thinking (ACCEPT), a think tank founded by Tsinghua University’s School of Economics and Management, released “China’s Macroeconomic Analysis and Forecast Report” on June 23.Economic Indicators Point to a Struggling Economy
Prices of consumer products are rising. According to China’s National Bureau of Statistics, the country’s consumer price index (CPI) annual growth rate reached 2.7 percent in May, which is the highest since February 2018.“Not only this report, but most of the CCP’s reports have said that China’s economy is doing well. Xi may believe it and thus, won’t give in when he talks to Trump,” Li told The Epoch Times on June 25.