Xi Jinping’s Leadership Challenges in China

There’s a common perception that China’s President Xi Jinping has a firm grip on power. However, as Peter Schweizer points out, this impression might be misleading, mainly because Xi suppresses dissent by incarcerating his opponents.

“Just as Xi was boarding a flight to the United States, he removed two high-ranking generals, citing ‘political unreliability,’” says Schweizer, who has authored several popular books on China. “These generals were part of the Central Military Commission, which is the key political entity in China.”

In a recent episode of The Drill Down, Schweizer and co-host Eric Eggers from the Government Accountability Institute discussed how Xi’s position isn’t as secure as some media might suggest regarding Trump’s critics.

“In the last couple of years, President Xi has removed six out of eight members from the Central Military Commission,” Schweizer notes. “These individuals were arrested and charged with serious crimes. The only ones left are Xi himself and the person he’s assigned to investigate the others.”

Eggers comments, “This indicates a significant level of instability in China, as well as Xi’s ability to suppress dissent—a control that is typically associated with dictators.”

“This man is quite ruthless. People often criticize Trump for his rhetoric, but Xi’s approach to political opponents is extremely harsh,” Schweizer highlights. “In the past two years, over forty officers in China have gone missing. Their families don’t know their whereabouts… This isn’t indicative of a leader who is stable and admired.”

This situation draws parallels to historical events like Josef Stalin’s purges and executions of supposed “counterrevolutionaries” in the Soviet Union. The pressing question for political analysts in the West is whether there is genuine resistance to Xi within China or if he is merely exhibiting a new variant of Stalin’s paranoia. Understanding the true state of the Chinese economy, despite the government’s optimistic reports, is crucial to this evaluation.

“The true condition is largely concealed,” Eggers adds.

“China is facing its lowest growth since 1991,” Schweizer states. “They’ve even stopped releasing a lot of economic data because it’s so unfavorable… This includes information on business confidence and real estate activity.”

As for comparative data, Eggers mentions that the U.S. has a total debt about 125 percent of its annual GDP, while China’s debt ratio stands at an alarming 300 percent of its total output.

These factors are important as Trump and Xi prepare to meet this week in Washington, particularly as commentators weigh the dynamics of each leader’s standing.

“The actual power dynamics and situations of these two leaders are, frankly, the reverse of what a lot of domestic media conveys. This might be due to their aversion to Trump or simple ignorance about what’s truly unfolding in China,” Schweizer explains.

Both hosts also predict that the mainstream media coverage will remain skewed. “ABC is owned by Disney, which has significant business interests in China,” Schweizer notes. “If they upset Xi, they risk being expelled from the country.”

Regarding the upcoming summit, the hosts anticipate that discussions will center on Iran and artificial intelligence. With increasing pressure on Trump to negotiate with China over AI advancements, Schweizer is blunt about the likelihood of any agreement being honored: “Zero percent.”

He reflects on the past during the COVID-19 pandemic. “They signed an agreement with the NIH to share all their research data, but they broke that agreement.” He goes on to mention other agreements China has violated.

“Ultimately, they are unlikely to adhere to any AI agreement. It’s structured to limit us, not them,” Schweizer asserts.

On the issue of Iran, the hosts highlight that China relies on imports for 90 percent of its oil. Due to Trump’s actions concerning Venezuela and Iran, China faces challenges in securing oil supplies. The country is depleting its reserves and will soon need to purchase oil at high prices, which could further harm its economy.