Jiang Consolidates Power, But Can He Hold It?
Summary:
China has officially extended the National Day holiday by one day, to Oct. 1-3. The government has also announced that an additional four days will be added this year, giving workers an extended Oct. 1-7 vacation. The suddenness and the length of these holidays suggest that there is more going on than a simple workers' holiday. With the nation effectively shut down for a week, the groundwork has been laid for Chinese President Jiang Zemin to firmly consolidate his hold on power.
Analysis:
Chinese government offices and businesses will be closed from Oct. 4-7, the government announced, extending the scheduled Oct.1-3 National Day holiday by four days. According to Chinese officials in the United States, the longer vacation is because the actual holiday falls on the weekend. Sources inside China have suggested the last minute extension was the result of a heated debate in the National People's Congress. The winning faction claimed that the weeklong holiday was "in order to spur consumer spending." With the sudden announcement of such a long vacation so soon before the celebration, neither explanation is particularly convincing. This is especially true given the ongoing power struggles in Beijing and suggests something more extraordinary is about to happen.
President Jiang Zemin, who has been strengthening his grip on power for some time, has referred to 1999 as a make or break year for the Communist Party of China (CPC) and for China as a whole. To do so, he has appointed his allies to high level military positions [ stratfor.com ] and slowly stripped power away from Prime Minister Zhu Rongji and the economic reformers. Since early this year Jiang has played an important role in the reorganization of officials, even down to the county level in civil society and divisional level in the army [ stratfor.com ].
A massive celebration in Beijing is planned for October 1, 1999, the fiftieth anniversary of the founding of the People's Republic of China. Security preparations in Beijing began as early as January when the city government started conducting a systematic cleansing of all unofficial and migrant residents. [ stratfor.com ] A final sweep by deputized citizens is currently underway. In addition, both the paging system and gas supplies will be shut down Oct. 1 as the 500,000 strong parade marches through Tiananmen Square. Buildings within two miles of the parade route will be emptied by noon Sept. 30. The city has been meticulously cleaned and modern billboards have been removed.
Beside efforts in Beijing, China has conducted nationwide crackdowns on potential ethnic separatists, opposition political movements, and religious organizations. All domestic travel to Beijing has been banned from Sept. 20 to Oct. 5, although foreigners and those traveling from Hong Kong, Taiwan and Macau will still be allowed into the city. In order to ensure nothing unexpected happens during the celebration, Beijing has made a point of not inviting foreign dignitaries to the celebration, though they are still allowed to attend.
Tightened security and other advance preparations support the idea that Jiang is about to make a move and perhaps fulfill a longstanding rumor that he wants to become the Chairman. Pictures to be displayed during the celebrations have been kept secret, but there is talk that Jiang's face may appear next to those of Mao and Deng. In addition, Jiang's wax likeness is conspicuously absent from the Museum of the Revolution's Great Men of China exhibit, suggesting a new likeness is being prepared. Adding to the importance of the position of Chairman, China is keeping its banks open Oct. 1 to release new money, including a redesigned 100 yuan bill featuring a solo picture of Mao, instead of the pictures of Prime Minister Zhou Enlai, former President Liu Shaoqi, and former Marshal Zhu De.
While the transportation infrastructure will reportedly remain in operation during this lengthened vacation, the Chinese have traditionally reacted to such extended holidays by visiting family or staying home. The Shanghai and Hong Kong stock exchanges are officially closed Oct. 1-3, though a Chinese diplomatic official in the United States suggested the Shanghai market may be closed for the entire seven days. The move to effectively close China for a week suggests an extraordinary event is about to unfold in Beijing, one that will have nationwide repercussions.
The National Day celebration gives Jiang the prime opportunity to re-establish himself as head of the government, quite possibly taking on the title of Chairman. Aside from its obvious symbolic effect, it would allow Jiang greater leverage in returning to a centralized control structure. Taken to the extreme, Jiang could erase Deng from Chinese history. But stripping power from Zhu and revising the central planning role of the Communist Party is effectively the same thing.
If Jiang is bold enough to declare himself Chairman, essentially ending economic reforms, it is not Beijing he has to fear, but China's economic centers like Shanghai, Guangdong, and even Hong Kong. The threat of a redistribution of wealth from the coast to the interior, already a part of Jiang's plans, could trigger a response from those directly affected, including civilian businessmen, high-ranking People's Liberation Army (PLA) officers and Communist Party officials. By shutting down the country for a week, Jiang could identify and suppress any opposition from these economic strongholds. With the markets closed for a week, capital flight could be prevented and it would allow time to convince the international community that despite the shift to centralized control, investments remain safe in China.
While it is unclear what will happen on National Day in China, it is clear that Jiang has been making obvious moves to consolidate power over both military and economic matters. The international community will be eyeing the events in Beijing to see China's future. Sources in China have said that the government of Singapore has warned its citizens to be prepared to leave, further suggesting a major upheaval within the government structure. The question is whether Jiang can maintain his increasing grip on power and resolve the power crisis in Beijing.
__________________________________________________
SUBSCRIBE to FREE, DAILY GLOBAL INTELLIGENCE UPDATES (GIU) stratfor.com
or send your name, organization, position, mailing address, phone number, and e-mail address to alert@stratfor.com
UNSUBSCRIBE FROM THE GLOBAL INTELLIGENCE UPDATES (GIU) stratfor.com ___________________________________________________
STRATFOR.COM 504 Lavaca, Suite 1100 Austin, TX 78701 Phone: 512-583-5000 Fax: 512-583-5025 Internet: stratfor.com Email: info@stratfor.com ___________________________________________________
(c) 1999, Stratfor, Inc. |