An intensifying campaign against official corruption has begun entangling some of China's most senior officials, with potentially significant effects on leadership over the next three years. The political ambitions of former Premier Li Peng, who built his bureaucratic career in China's power industry, may be crippled by a scandal now unfolding in the State Power Corporation, the country's monopoly supplier of grid electricity.
Analysis
Li, an engineer by training, served as minister of electric power in the 1980s. He has long been unpopular among Communist Party reformers, both for his hard-line political stance - he played a central role in the decision to use deadly force against demonstrators in Beijing in June 1989 - and his conservative economic views, which have obstructed what more market-oriented officials see as critical reforms of China's state-controlled assets.
Partly because of his unpopularity in the wake of the Tiananmen massacre, Li was marginalized in recent years. After completing his term as premier, he was assigned a superficially impressive but essentially symbolic role as chairman of the National People's Congress, China's almost powerless legislature. Nevertheless, no one doubts he has greater ambitions, and, in the tradition of Chinese bureaucratic politics, his old associates in the Ministry of Electric Power should have proved useful allies when the moment was right.
Li Peng's problem is that the Ministry of Electric Power no longer exists. Like most Chinese specialized economic ministries, it was abolished under the 1998 administrative reforms. The reforms turned it into a specialized quasi-corporate body, the State Power Corporation, and placed it under the supervision of the nation's main economic regulator, the State Economic and Trade Commission, or SETC. The move, which stripped power ministry officials of their regulatory and licensing authority, had the unintended - but perhaps not unwelcome - effect of undermining Li's power base.
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