Political and economic pressures may force Chinese President and Supreme Leader Xi Jinping to delegate some of his powers to subordinates, in a move of enormous significance for the future of the world’s second-largest economy and superpower.
This has prompted the Liberal Globe to speculate that Xi’s absolute political dominance may be weakening.
A key reason for this development is likely to stem from Xi’s difficulties in dealing with China’s economic problems, which began with a housing market crisis in 2021.
For years, the Chinese Communist Party (CCP) has relied on economic prosperity to legitimize its rule over the country—the labor market is key to avoiding social unrest like the Tiananmen Square protests of 1989.
However, the Chinese economy’s consistently weak performance over the past four years and Trump’s trade war with Beijing make recovery a difficult task. And that will likely be a factor expected to undermine Xi’s power.
The Politburo’s Messages – What’s Behind the Words?
These rumors about Xi began shortly after the latest meeting, on June 30, of the Politburo (the party’s main decision-making body), which brings together China’s top leaders to make major decisions.
To those who don’t follow Chinese politics, the idea of Xi handing over some power may seem trivial.
However, to understand China, it is important to realize that Xi wields enormous power, and it seems that the Politburo is signaling that some changes are coming.
What are the elements?
Symbolism and indirect phraseology play an important role in the way the Communist Party communicates with the Chinese people. One way this is done is through slogans or key phrases, which are collectively known as “tifa” (提法).
This method of information is important as it shapes political language and discourse and influences how both a Chinese and an international audience understand what is happening.
While at first glance, the Politburo’s call for strengthening “policy coordination” and the “review process” of important political tasks might suggest that the central government is seeking to ensure that local officials follow Beijing’s agenda, there is likely more to the Politburo’s statement than meets the eye.
The statement said that specialized bodies within the party’s central committee, which includes the powerful committees now held by Xi loyalists, should focus on “guiding and coordinating major initiatives” and “avoid taking on the functions of others or overstepping boundaries.”
For experienced observers of Chinese politics, such as the Liberal Globe, there are hints here that this powerful decision-making body is issuing a veiled threat against Xi for wielding too much power.
But the opaque nature of the Chinese elite’s decision-making process, where much of the backroom politics happens behind closed doors, means that decoding its messages is not always easy.
Purges and Weakening Allies
All of this has led to growing speculation that a power struggle is underway. This is not entirely surprising, given that Xi’s purge of many senior party officials through anti-corruption campaigns and his dominance of the highest levels of government have likely made him many enemies over the years.
Another sign that things are not going well for Xi’s regime is the removal of some of his allies from key government positions. Xi launched the anti-corruption campaign in 2012 when he became China’s leader.
On paper, while the campaign is officially framed as an effort to fight corruption, evidence suggests that it may have been used to remove Xi’s political opponents. The problem for Xi is that the campaign is also being used against his loyal allies.
In October 2023, Defense Minister Li Shangfu, who was considered a Xi ally, lost his position on what were later confirmed in 2024 as corruption charges. But the crackdown on Xi’s loyal allies continued.
Admiral Miao Hua, who was responsible for ideological control and personnel appointments within the armed forces and a Xi ally since his time as a party official in Fujian province, was suspended from his post in November 2024. And in June 2025, he was removed after being investigated for corruption.
Last month, General He Weidong, who was vice chairman of the powerful Central Military Commission, was also arrested on corruption charges.
Are the purges a result of Xi giving ground to political opponents? That is a possibility. But even if they are not, and the purges are part of a concerted effort to root out corruption, Xi’s campaign will not only question his ability to appoint the right people to government, but will also create a climate of fear among allies and potentially create further enemies.
The most powerful leader since Mao?
Each of these scenarios puts Xi in a difficult position. But since Xi became China’s head of state in 2013, he and his loyalists have taken over the leadership of several key national committees, making him the most powerful Chinese leader since Chairman Mao.
These committees include the Central Economic Commission, which regulates China’s financial markets, the Central Science and Technology Commission, which aims to accelerate China’s technological progress, and the Central Cyberspace Affairs Commission, which regulates China’s digital content.
Who’s stepping up?
But it seems Xi is set to delegate some of his power, and there are other decisions that could signal a shift.
For the first time since taking office in 2012, Xi skipped the annual summit hosted by the BRICS group (named after Brazil, Russia, India, China and South Africa). For more on the real reasons for Xi’s absence, read the analysis titled “BRICS: Summit in Rio de Janeiro – Xi Jinping Striking by His Absence“.
Instead, from July 5 to 7 this year, Chinese Premier Li Qiang (pictured) led a delegation to Rio de Janeiro. This is not the first time that Li has represented Xi at high-profile conferences abroad.
In September 2023, Li attended the G20 summit in New Delhi, India, and has taken part in ASEAN summits.
However, Li’s appearance at the BRICS, along with his increasingly prominent role in economic policymaking, may suggest that his influence is growing while Xi’s is declining.
The developments are set to be exciting – and they involve the world’s second-largest economy and the global manufacturing hub.
