August 3, 2026

03a China

Originally published Nov 13, 2025 for our weekly Issue of Mindful Intelligence AdvisorSubscribe to get weekly issues.

By Michael A. Cessna, Military Affairs Correspondent

“Comrade Mao, whether he was crossing ‘a sea of surging waves’ or scaling ‘a mountain pass impregnable as iron’ always held unwaveringly to his course, setting a shining example for the Chinese Communist Party.”Xi Jinping

INTRODUCTION

Communists love bureaucracy. The average Communist party makes the opaque and brain-melting “bureaucratese” coming from inside the Beltway read like a Dr. Seuss book. But, once said Party gets itself established, that tone rapidly hurls itself over a cliff…Case in point:

From October 20-23, 2025, the Chinese Communist Party (CCP) convened its Fourth Plenary Session of the 20th Central Committee – a gathering of roughly 370 top party officials that serves as one of the most important events in China’s political calendar.

For Western observers trying to understand where Beijing is heading, this plenum displayed a disturbing shift: Xi Jinping has consolidated more personal power than any Chinese leader since Mao Zedong, and he’s doing it through an unprecedented purge of the military and party elite…

And he also thinks that China can ‘go it alone’, angling for full-blown autarky for the Communist Chinese state. However, the confirmation of deep-cutting purges expose a shaky regime… one armed with an impressive nuclear arsenal.

A. BACKGROUND: THE HOLLOWED-OUT HALL

The most striking aspect of the Fourth Plenum wasn’t what happened – it was who didn’t show up. Only 168 of 205 Central Committee members attended, representing a mere 82% of the body. Another 24 alternate members were missing. Neil Thomas, a fellow at the Asia Society Policy Institute, dubbed it the “Purge Plenum,” describing it as the hollowest CCP gathering of the post-Mao era.

The absences weren’t due to illness or travel. They represented political death sentences – officials under investigation, expelled from the party, or simply vanished into China’s opaque disciplinary system.

A total attendance of 315 members marked the lowest number since Xi came to power in 2012, dramatically lower than the three-hundred and sixty-four who attended last year’s plenum, or the 373 from the year before.

But the real shock came from the military wing of the Party. Of forty-two People’s Liberation Army members on the Central Committee, fully 27 were absent – a staggering 63% absence rate, including twenty-two generals.

Among the missing: the respected and highly experienced Navy Commander, Vice Admiral Hu Zhongming, Commander of the Northern Theatre (charged with guarding the capital of Beijing) General Huang Ming, and Eastern Theatre Political Commissar Liu Qingsong.

These are not mid-level bureaucrats; these were the men responsible for commanding China’s military forces. This is eerily similar to the Stalinist purges of the 1930’s, even if they have not reached that scale… yet.

The more Xi purges what he views as potentially disloyal elements – both political and military – the more weakened and debilitated the Communist Chinese military becomes. For Western military observers, this muddies assessments of everything from the CCP’s nuclear arsenal (see below) to their ability to both invade Taiwan, and to contest the South China Sea with the United States. This is because military leadership becomes very unwilling to actually “train” their troops for anything but parades, if such training is viewed as a potential threat to their “Dear Leader“.

  1. THE PURGE SURGE – These purges, despite their small scale (compared to those of “Comrade” Stalin) are just as dramatic and damaging. Days before the plenum opened, Beijing announced the expulsion of nine senior military officers, including one of only two vice chairmen of the Central Military Commission – China’s highest military policymaking body – and a member of the ruling Politburo.

The expelled officers included Admiral Miao Hua, the PLA’s most senior ideologist, and his deputy, General He Hongjun, who reportedly “died by suicide” in the wake of “corruption” charges.

The plenum itself confirmed that ten Central Committee members and four of the alternates had been formally expelled – a near record for disciplinary actions. Since the 20th Party Congress in 2022, at least 14 generals have been purged, including former defense ministers Li Shangfu and Wei Fenghe.

But The scale becomes even more startling when examined closely: Of forty-four uniformed officers selected to the Central Committee in 2022, only some fifteen remain untouched as of late 2025 – A POLITICAL SURVIVAL RATE OF JUST 34%.

Lower-ranking alternate members fared only slightly worse, with a c.30% survival rate. The PLA’s Rocket Force, responsible for China’s nuclear deterrent and conventional missile forces, has seen its leadership cadres severely gutted, losing at least nine senior commanders, with one analyst noting that the force has been “almost completely purged of former senior leaders“.

Official explanations cite “corruption” – “serious violations of discipline” and “duty-related crimes involving an extremely large amount of money“. But while corruption is certainly endemic in China’s system, the timing and scale suggest something much more serious: Xi is systematically eliminating anyone who might pose even a theoretical challenge to his authority, even officers he personally promoted.

These sorts of actions are not, obviously, conducive to military efficiency or coherent policies and training.

  1. SELF-RELIANCE AS STRATEGY – Beyond the dramatic purges, the plenum advanced Xi’s economic agenda for the CCP’s 15th Five-Year Plan, covering the 2026-2030 timeframe. The full plan won’t be released until March 2026, but the official communiqué revealed Xi’s priorities: “self-reliance and self-strengthening in science and technology” to develop what Beijing calls “new quality productive forces,” marking a definitive shift towards autarky.

Translation: Xi wants China to become technologically independent of the West, particularly in advanced semiconductors, artificial intelligence, and military applications. The rhetoric of “self-strengthening” deliberately echoes China’s response to Western imperialism in the 19th century – a historical reference Xi’s audience understands implicitly. Whether they can pull this off or not is the real question – Short Answer: They almost certainly can’t.

Xi’s remarks to Trump at their meeting in South Korea – promising that “our two countries can totally help each other to succeed and prosper” – contrast sharply with his language while in Beijing, where he called for China to “win the strategic initiative amid fierce international competition“. One message soothes foreign audiences, the other reveals actual policy.

The plenum also reaffirmed China’s goal of reaching per capita GDP of $20,000 by 2035, which would require maintaining an annual growth above 4% for the next decade. Given China’s slowing economy, mounting debt, and demographic challenges (a festering leftover of the “One Child Policy” implemented in 1979), this is certainly ambitious, to the point of bordering on fantasy.

But Xi framed it as essential for China’s “great rejuvenation” – another loaded historical term suggesting a return to China’s perceived rightful place as the dominant power in Asia.

The problem with this rosy strategy is that in addition to the Communist state’s faltering domestic economy (see below), its flagship foreign trade scheme, the so-called “Belt and Road Initiative” (BRI) is rapidly collapsing, increasing the velocity of Beijing’s economic death spiral.

B. WHAT THIS ALL MEANS

Three key conclusions have emerged from this plenum. First, Xi no longer faces meaningful internal opposition. The purges demonstrated his strength, not weakness. As one Asia Society analysis noted, by 2027 Xi will have promoted a new generation of officials “who have survived and internalized 15 years of his rule” – leaders steeped in an ethos of control and self-reliance rather than reform and experimentation.

Second, the military purges raise serious questions about PLA capabilities, readiness and internal cohesion. Xi has publicly ordered the military to be ready for action against Taiwan by 2027. Yet he’s simultaneously gutting the officer corps, creating an atmosphere where, as one Taiwanese analyst put it, “no one can be fully trusted“.

This suggests either that Xi believes loyalty matters more than competence, or that the corruption his internal security forces have uncovered genuinely threatens military effectiveness. Neither interpretation is reassuring, given how volatile the internal political maneuvering of the CCP can get.

Third, Xi’s emphasis on autarkic technological self-reliance and economic independence signals that he views strategic competition with the United States as inevitable and probably permanent. The conciliatory language for foreign consumption should not fool anyone – Beijing is preparing for a long-term competition it believes will determine whether the 21st century belongs to China or remains dominated by American power.

While these three conclusions are clear, they also mark a dangerously unstable mix of competing forces, over whose control it remains unclear how well Beijing can manage. In effect, Communist China is a technologically advanced, economically unstable, Third World tin-pot dictatorship…with a population of nearly 1.5 billion.

  1. THE POWER PARADOX – Xi Jinping now exercises “complete control” according to official rhetoric, with the party calling on officials to “unite more closely around the Central Committee with Comrade Xi Jinping at its core“. Yet the rows of empty seats at the plenum captured the paradox: absolute authority purchased through constant purges. It is the power of fear, not inspiration.

For Americans trying to understand China’s trajectory, the Fourth Plenum provides crucial insight. The United States faces a China led by one man who tolerates no dissent, who views the world solely through the lens of great-power competition, and who is willing to sacrifice experienced military leadership to ensure the personal loyalty of the remainder.

That makes China simultaneously more predictable – Xi’s word is policy – and more dangerous, since no institutional checks exist on his judgment…the dangers of which, the Biden Administration’s “autopen” controversy demonstrated.

This is very much the 21st Century version of the “Cult of Personality” and “Great Man” theories that defined the middle forty years of the 20th Century…with potentially everything bad that comes with them.

The question is not whether Xi controls China. He clearly does. The question is whether a system built on purges and fear can execute the sophisticated economic and military strategy Beijing envisions – or whether Xi’s iron grip is slowly strangling the very capabilities China needs to achieve his ambitions.

The greater question, however, is what might happen if Xi were to die suddenly, with no clear successor. When the Soviet Union fell at the end of 1991, in the wake of the Soviet hard liner’s reactionary coup attempt against Mikhail Gorbachev, there were certainly “issues“. But there was never any hint of an actual civil war among various Soviet factions.

In the Communist China of 2025-2026, there is no guarantee of a new civil war not happening. There are plenty of factions within the CCP – military, Party and industrial – that would be vying for power in the sudden aftermath of Xi’s downfall (from whatever method). None of the likely options are comforting.

  1. THE REALITY OF POWEROld Is New…? – Communists always do Communist things, in very Communist ways – they are intellectually incapable of doing anything different. But, as always, History serves as both guide and warning.

While not reaching the scale of Stalin’s purges – yet – Xi’s methodology of enforcing discipline through capricious iron rule reveals a highly disturbing trend in the internal politics of a nuclear-armed state.

Communist China’s economy is slowing dramatically, despite observers desperately trying to put lipstick on a pig. This alone is a serious problem, given the Communist giant’s sheer population density.

But really, the series of dangerously disruptive purges are the true problem.

  1. WHERE THE PURGES LEAD: THREE DANGEROUS SCENARIOS – The immediate question facing Western strategists is deceptively simple: does Xi’s consolidation of power make China more or less dangerous?

The uncomfortable answer is that it makes Beijing simultaneously weaker and more unpredictable – a combination that historically produces catastrophic miscalculations.

3.1: THE 2027 PROBLEM: A GUTTED MILITARY MEETS AN AMBITIOUS TIMELINE – Xi Jinping has publicly committed the People’s Liberation Army to being ready for military action against Taiwan by 2027.

Yet he’s simultaneously purged two-thirds of the PLA’s senior leadership since 2022. The contradiction is stark: Communist China wants to prepare for perhaps the most complex and dangerous military operation since D-Day – an amphibious assault across the Taiwan Strait – with an officer corps that has been decimated not by enemy action but by its own leaders’ paranoia.

The parallel to Stalin’s “Winter War” against Finland is stark.

History offers that war as a grim precedent for today. Stalin’s purges of the Soviet military in the late 1930s removed – often lethally – experienced commanders and replaced them with politically reliable mediocrities and outright incompetents.

When Hitler invaded the Soviet Union in 1941, the Red Army’s initial performance was catastrophically bad, with millions of casualties and staggering swaths of territory lost in the first months. The Soviet Union eventually prevailed through sheer industrial capacity and population density – advantages that won’t help China in a “Taiwan invasion” scenario requiring precision, absolute timing, intimate coordination, and split-second decision-making.

The danger isn’t that Xi’s weakened military will be too cautious. It’s that a command structure built on fear will tell Xi only what he wants to hear, rather than what he needs to know. When every officer knows that honest assessments can end careers (or lives), intelligence gets filtered through layers of self-preservation. Plans become overly optimistic. Risks get minimized. And leaders eventually make decisions based on fantasy rather than reality.

3.2: THE ECONOMIC TRAP: WHEN PROMISES MEET REALITY – Xi’s commitment to 4% annual growth through 2035 faces structural headwinds that no amount of political will can overcome. China’s working-age population is shrinking by roughly 5 million people per year. Local government debt exceeds 60 trillion yuan (approximately US$8.4 trillion).

The property sector – which drove Mainland Chinese growth for two decades – has collapsed. And Xi’s emphasis on “self-reliance” means cutting China off from the very technological exchange that fueled its previous rise…that also undermines his vaunted “Belt and Road Initiative“.

When authoritarian regimes face this combination of slowing growth and disappointed expectations, they historically reach for the nationalist playbook. A Taiwan adventure offers Xi a way to rally domestic support, distract from economic failure, and fulfill his “great rejuvenation” promises (rather like Leopoldo Galtieri in 1982) – all while the window of American distraction or weakness might be open.

The calculation then becomes perverse: Xi might choose military action – not from a position of strength but from weakness. He might be thinking that waiting only makes his economic and demographic problems worse. This is the most dangerous scenario: not a confident China executing a long-planned strategy, but a desperate China gambling that external aggression can solve internal problems.

3.3: THE SUCCESSION BLACK HOLE – Xi is 72 years old and has methodically eliminated anyone who could plausibly succeed him. The Central Committee members who survive his purges are survivors precisely because they pose no threat – which means they possess no independent power base, no vision beyond Xi’s, and no legitimacy separate from their association with him. When Xi eventually dies or becomes incapacitated, China faces a succession crisis with no obvious resolution.

This matters because it affects Xi’s timeline for major action. If he believes his window for achieving his goals – particularly regarding Taiwan – is limited to his own lifespan, that creates pressure on him for action sooner rather than later. A leader who has made himself indispensable will want to secure his legacy while he can still direct events.

This fear – the unseating of a dictator who has no clear successor – was one of the exact considerations that went into not outright invading and conquering Iraq in 1991, as Saddam Hussein – as in 2003 – had no obvious successor, and none of the Coalition powers of that time wanted to get bogged down in an occupation of a nation of over 17 million people.

And China has a population well in excess of one billion, and closer to 1.4 or 1.5 billion.

PREDICTIVE ANALYSIS

What Should America Do? – These scenarios argue for a specific American policy response: strengthen deterrence now, while Xi’s military is still weakened by purges, but before desperation drives recklessness. This means accelerating arms sales to Taiwan, making explicit defense commitments that remove ambiguity, and working with allies to demonstrate that the costs of aggression would be prohibitive regardless of China’s internal political needs.

On the economic front, this also means that the United States needs to accelerate and expand its domestic manufacturing of general-use microprocessors, as far too much of America’s need for these is anchored in Taiwan, and is thus exposed to catastrophic disruption in the event of a Communist invasion attempt, successful or not.

The worst wrinkle here is the terrible situation with the United States military’s manning levels. After being gutted by mismanaged budgets, insane procurement strategies, and having its traditional recruiting demographics be actively discouraged (by whatever means) from enlisting, the United States military remains smaller than it was in 1941.

While there has been a “bump” to recruiting numbers in the aftermath of Donald Trump’s 2024 election, it remains to be seen if that boost can be sustained, because technology will not overcome the numbers problem, here, as Communist China is too close to the U.S., technologically speaking.

The worst mistake for the U.S. government would be to interpret Xi’s consolidation of power as evidence of Chinese strength and confidence. Dictators who rule through fear are often at their most dangerous when they are at their weakest, because they have the most to prove – to their own populations, to their purged rivals, and to themselves.

Xi Jinping has built a system where no one can challenge him. That means no one can stop him either. And a China that cannot restrain its leader is a China that Americans must prepare to deter, contain, and if necessary, defeat.

The Fourth Plenum didn’t reveal a confident superpower ready to peacefully surpass America. It revealed a nuclear-armed dictatorship trapped by its own internal logic, led by a man who has eliminated every check on his judgment, facing economic and demographic decline that he cannot admit and cannot reverse.

That is not a recipe for caution. It’s a recipe for catastrophe.

FURTHER RESOURCES:

The Opium Wars: A History from Beginning to End – Hourly History

The Soviet Invasion of Finland, 1939-40 – Carl Van Dyke

The Struggle for Taiwan: A History of America, China, and the Island Caught Between – Sulman Khan

If you judge by the actions of the Fourth Plenum, you’d have had reason to believe Chairman Xi staved off the challenge to his authority. After it was confirmed by Chinese state press that Ma Xingrui, one of Xi’s strongest lieutenants, has been detained by the Central Commission for Discipline Inspection (CCDI), it appears he did not completely silence real dissent from within. The CCDI is controlled by military leadership.

The next target appears to be Cai Qi, the director of the Central Office, who hasn’t been seen or heard from in several weeks. Should Cai Qi not re-emerge, the move would be seen as the military seeking to assert more sovereignty apart from CCP leadership, which is the source of Xi’s power over the military at present.

Blurb:

CCP Under Siege: Zhang Youxia Personally Detains Xi Loyalist Cai Qi  Vision Times
from news.google.com

Political shockwaves are once again rippling through Beijing as two of leader Xi Jinping’s most powerful lieutenants — men once seen as untouchable — are now rumored to be under direct scrutiny from China’s military investigators. According to reports, former Xinjiang Party Secretary Ma Xingrui has reportedly been taken away for a probe by the Central Commission for Discipline Inspection (CCDI).

Meanwhile, Politburo Standing Committee member and Central Office (Zhongban) Director Cai Qi (who hasn’t been seen in public for weeks) remains radio silent. Now, new reports allege that on Nov. 8, military discipline inspectors escorted him out of a Guangzhou hotel. The Politburo acts as China’s top ruling body.

Analysts believe the military is zeroing in on two of the most sensitive posts in the Party-state system: Cai Qi, director of the Central Office (who oversees the Central Guard Bureau), and Wang Xiaohong, China’s minister of public security — the two most important positions tied directly to physical control of the Chinese Communist Party’s (CCP) top ranks.

Blurb:

Diplomatic dispute deepens between Tokyo and Beijing over Taiwan remarks by Japanese Prime Minister Sanae Takaichi.

China will again ban all imports of Japanese seafood as a diplomatic dispute between the two countries escalates, Japanese media report.

Japanese public broadcaster NHK and Kyodo News agency said on Wednesday that the seafood ban follows after China earlier this month lifted import restrictions on Japanese marine products, which were imposed by Beijing in 2023 after the release of treated radioactive water from Japan’s crippled Fukushima nuclear plant into the sea.

Blurb:

The term “smart city” fails to fully capture the integrated data system that is the Pudong New Area of Shanghai.  Chinese authorities call it the “city brain,” a centrally controlled A.I. center that surveils and manages the city and its inhabitants.  It offers a disturbing preview of future urban governance, built on a previously unimaginable level of monitoring and control.  Since 2017, this system has linked hundreds of government databases to tens of thousands of sensors, effectively turning an entire urban district into a single, real-time data object.

Officials defend the surveillance for its tangible rewards: cleaner neighborhoods, faster emergency response, smoother traffic, and better protection for isolated seniors.  Those benefits help explain why many citizens accept the system.  But the costs are equally real.  It normalizes penetrating, constant visibility, the steady expansion of behavior-based penalties, and an infrastructure that is also used for political and social control.

Blurb:

Russia will issue government bonds denominated in Chinese yuan for the first time next month, the Finance Ministry announced Wednesday.

The ministry said it would offer two series of OFZ bonds, each worth 10,000 yuan ($1,400), with maturities ranging from three to seven years and interest payments every six months.

Investors will be able to buy and receive payments either in yuan or rubles, it said in a statement.

Order placements are scheduled for Dec. 2, with the sale itself planned for Dec. 8.

The Finance Ministry did not specify the total amount of its yuan bonds, saying it would be determined after assessing investor demand. Reuters reported last month that the ministry was preparing to issue up to 400 billion rubles ($4.9 billion) worth of yuan bonds.

Blurb:

A Chinese consul general in Japan threatened to decapitate the nation’s new prime minister over her comments in defense of Taiwan, prompting outrage in Tokyo and underscoring the rising tension between the two regional powers.

Prime Minister Sanae Takaichi, who took office last month, told a parliamentary committee Friday that a Chinese blockade of Taiwan would likely create a “survival-threatening situation” for Japan — one that could compel Tokyo to deploy its Self-Defense Forces in response. The democratically governed island sits just 60 miles from Japanese territory.

Xue Jian, the Chinese consul general in Osaka, fired back in a since-deleted X post on Sunday: “That filthy neck that barged in on its own — I’ve got no choice but to cut it off without a moment’s hesitation. Are you prepared for that?”

As protests continue against the new government in South Korea over its seeming embrace of China and North Korea, the Democrats prepare to crack down on the dissenters. The Democratic Party of Korea is introducing multiple bills in the legislature it controls that would criminalize anti-China protests.

Democratic Party Representative Yang Bu-nam introduced an amendment to the criminal act that would prohibit anti-China protests. He justified the actions, claiming, “On March 3 of last month, participants at an anti-China rally sang a song containing lyrics like ‘Changgae, Bukgye, and red communists should leave quickly’ and used profanity, spreading false claims about Chinese interference in elections.”

Blurb:

Democratic Party Proposes Prison for Anti-China Defamation  조선일보
from news.google.com

The Democratic Party of Korea has consecutively proposed bills targeting anti-China protests. The People Power Party has reacted by criticizing, “They remain silent on anti-U.S. and anti-Japan protests but single out anti-China demonstrations.” Critics argue that the Democratic Party, which has long emphasized the freedom of assembly and expression, is now leading efforts to suppress protests. On the 6th, the party also passed an amendment to the Aviation Safety Act at the National Assembly’s Legislation and Judiciary Committee, banning the distribution of anti-North Korea leaflets in no-fly zones near border areas. The People Power Party opposed the move, stating, “It has unconstitutional elements, including infringing on freedom of expression.”

Democratic Party Representative Yang Bu-nam proposed a Criminal Act amendment on the 4th to recognize defamation against specific groups. Under the bill, those who defame the honor of specific nations, peoples, or races face up to five years in prison or a fine of up to 10 million Korean won, while those who publicly insult them face up to one year in prison or a fine of up to 2 million Korean won. Current law limits defamation and insult victims to individuals, but the amendment expands this to groups.

Blurb:

A federal appeals court upheld a Florida law on Tuesday that restricts Chinese nationals and entities affiliated with the Chinese Communist Party (CCP) from making land purchases in the state.

In a 2-1 ruling, the 11th Circuit Court of Appeals ruled that the group of Chinese nationals challenging parts of the law (SB 264) lacked standing to bring their suit. The decision comes after the district court denied plaintiffs’ request for a preliminary injunction blocking the statute’s enforcement.

“After careful review, and with the benefit of oral argument, we affirm the denial of the plaintiffs’ preliminary injunction motion as to the registration and affidavit requirements. But we reverse and remand for the district court to deny the preliminary injunction motion without prejudice as to the purchase restriction because none of the plaintiffs have shown they have standing to challenge that provision of SB 264,” the ruling reads. The majority opinion noted how several of the plaintiffs, although they are Chinese citizens, were not “domiciled” in China, and therefore their efforts to purchase property falls outside the scope of the law.

Blurb:

President Donald Trump has moved to cut U.S. fentanyl-related tariffs on Chinese goods in half, following last month’s in-person meeting with China’s leader Xi Jinping in South Korea.

Under a new executive order issued on Tuesday, the tariff will drop from 20 percent to 10 percent beginning November 10.

In the order, Trump stated:

“The PRC [People’s Republic of China] has committed to take significant measures to end the flow of fentanyl to the United States, including stopping the shipment of certain designated chemicals to North America and strictly controlling exports of certain other chemicals to all destinations in the world.”

Trump and Xi met on October 30 on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Busan, South Korea.

After the meeting, Trump said he believed Beijing would take “strong action” to stem the supply of precursor chemicals used to manufacture fentanyl.

A Norwegian public transport company has found that Chinese-made electric vehicles have security flaws built into them that allow their Chinese manufacturers to remotely access them and even control them. This means they can be turned into saboteurs and user data is going back to the CCP.

Arild Tjomsland, one of the investigators, claimed, “The Chinese bus can be stopped, turned off, or receive updates that can destroy the technology that the bus needs to operate normally.”

Blurb:

Major security concerns have been raised in Norway after safety tests revealed that Chinese-made electric vehicles can be remotely accessed and controlled by their manufacturers in China.

A Norwegian public transport company conducted covert cybersecurity tests on electric buses from both European and Chinese makers.

The investigation sought to determine whether foreign-built vehicles posed a threat to national security.

Blurb:

China will begin easing an export ban on automotive computer chips vital to production of cars across the world as part of a trade deal struck between the US and China, the White House has said.

The White House confirmed details of the deal in a new fact sheet after Xi Jinping and Donald Trump met in South Korea this week.

The nations also reached agreements on US soybean exports, the supply of rare earth minerals, and the materials used in production of the drug fentanyl.

The deal de-escalates a trade war between the world’s two largest economies after Trump hit China with tariffs after he entered office this year, leading to rounds of retaliatory tariffs and global business uncertainty.

Now that Xi has JUST NOW agreed with Trump to end his rare earth mineral ban, it appears the results of the plenum are a more constrained Xi no longer able to pursue his more bellicose policies. The moderates have won, but not conquered.

Blurb:

U.S. President Donald Trump said on Thursday he had agreed with President Xi Jinping to trim tariffs on China in exchange for Beijing cracking down on the illicit fentanyl trade, resuming U.S. soybean purchases and keeping rare earths exports flowing.

Trump’s face-to-face talks with Xi in the South Korean city of Busan, their first since 2019, marked the finale of the U.S. president’s whirlwind Asia trip on which he also touted trade breakthroughs with South Korea, Japan and Southeast Asian nations.

“I thought it was an amazing meeting,” Trump told reporters aboard Air Force One shortly after he departed Busan, ranking the talks a “12 out of 10.”

Trump said tariffs imposed on Chinese imports would be cut to 47 per cent from 57 per cent by halving the rate of tariffs related to trade in fentanyl precursor drugs to 10 per cent from 20 per cent.

Xi will work “very hard to stop the flow” of fentanyl, a deadly synthetic opioid that is the leading cause of American overdose deaths, Trump said. The tariff was reduced “because I believe they are really taking strong action,” he added.

U.S. President Donald Trump, right, speaks with Chinese President Xi Jinping during a bilateral meeting in South Korea. Trump met with Xi for the first time since taking office for his second term, following months of growing tension between both countries. (Photo by Andrew Harnik/Getty Images)

Only India and Brazil are still subject to higher tariff rates among major U.S. trading partners.

World stock markets from Wall Street to Tokyo had hit record highs leading up to the meeting on hopes of a breakthrough in a trade war between the world’s two largest economies that has upended supply chains and rocked global business confidence.

The cordial meeting, which took place on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, lasted nearly two hours.

Trump repeatedly talked up the prospect of reaching agreement with Xi since U.S. negotiators on Sunday said they had agreed a framework with China that will avoid 100 per cent U.S. tariffs on Chinese goods and achieve a deferral of China’s export curbs on rare earths, a sector it dominates.

But with both countries increasingly willing to play hardball over areas of economic and geopolitical competition, many questions remain about how long any trade detente may last.

As they sat down to begin talks at a South Korean air base on Thursday morning, Xi told Trump via a translator it was normal for the superpowers to have frictions now and then.

Beijing seeks easing of U.S. export controls

A few days ago, trade negotiators for both countries reached a “fundamental consensus on addressing each other’s primary concerns,” Xi said. “I am willing to continue working with President Trump to lay a solid foundation for China-U.S. relations,” he added.

As well as trimming the fentanyl tariffs, Beijing had sought an easing of export controls on sensitive U.S. technology, and a rollback of new U.S. port fees on Chinese vessels aimed at combating China’s global dominance in shipbuilding, ocean freight and logistics.

Trump made no immediate comment on U.S. concessions but said China would purchase “tremendous amounts” of U.S. soybeans and other farm products “starting immediately.”

Ahead of the summit, China bought its first cargoes of U.S. soybeans in several months, Reuters reported exclusively on Wednesday.

Previous trade deals, which brought down retaliatory tariffs on the U.S. side and restarted the flow of rare earth magnets from China, are due to expire on November 10.

But Beijing dramatically expanded its controls on rare earths earlier this month, minerals used in everything from cars to fighter jets on which they have a global stranglehold.

“They’re not going to impose the rare earth controls,” Trump told reporters.

Trump signed various pacts with Japan and Southeast Asian nations on diversifying supplies of rare earths during his trip, though blunting China’s dominance in that area may take years.

The leaders did not discuss chipmaker Nvidia’s state-of-art Blackwell artificial intelligence chip, Trump said, walking back the previous day’s remarks about potentially helping the company to export a scaled-down version of its current flagship GPU processor, a key component in the AI race.

from www.cbc.ca

Blurb:

Prime Minister Datuk Seri Anwar Ibrahim today said Chinese Premier Li Qiang has agreed to accelerate talks on the South China Sea Code of Conduct (COC) with Asean member states.

Anwar said the Chinese leader’s remarks came after the bloc stressed that all maritime disputes in the South China Sea be resolved based on a mutually-agreed code of conduct during the recent Asean-China Summit.

“All agreed that this region should not be an area of contestation for superpowers,” Anwar told reporters after the closing ceremony of the 47th Asean Summit and Related Summits, here, today.

“Their presence is accepted. We work with some maritime initiatives with the Americans and conduct traditional military exercises with Australia, New Zealand, Malaysia and Singapore.

Blurb:

True to form, Xi’s regime claims that the military leaders swept up by his latest purge – including General He Weidong, a member of the Politburo, Vice Chair of the Central Military Commission, and the third-highest-ranking figure in China’s military hierarchy – committed “disciplinary violations” and “duty-related crimes.” But a more plausible explanation is that Xi is playing an interminable game of Whac-a-Rival, desperately trying to preserve his grip on power.
Xi’s fears are not entirely misplaced: each new purge deepens mistrust among China’s elite and risks turning former loyalists into enemies. From Mao Zedong to Joseph Stalin, there is ample evidence that one-man rule breeds paranoia. By now, Xi may well have lost the ability to distinguish allies from foes. At 72, Xi remains so insecure in his position that, unlike even Mao, he has refused to designate a successor, fearing that a visible heir could hasten his own downfall.
None of this bodes well for China. By refusing to lay the groundwork for an eventual leadership transition, Xi sharply increases the risk that the end of his rule – however that comes – will usher in political instability. In the meantime, Xi’s emphasis on personal fealty over ideological conformity is weakening institutional cohesion in a system once grounded in collective leadership. Coupled with his arbitrary firings and prosecutions, Chinese governance is now increasingly defined by sycophancy and anxiety, rather than competence and consistency.
China’s military is paying a particularly steep price for Xi’s insecurity. In recent years, the PLA has undergone sweeping structural reforms aimed at transforming it into a modern fighting force capable of “winning informationized wars.” But Xi’s purges risk undermining this effort by disrupting military planning and leadership. For example, his abrupt removal in 2023 of the leaders of the PLA’s Rocket Force, which oversees China’s arsenal of nuclear and conventional missiles, may have jeopardized China’s strategic deterrent.