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Jiang's old allies now kowtow to Hu Jintao

HONG KONG - It was a quiet political earthquake, though political aftershocks are still being felt and will continue to rumble through and quite possibly transform the political landscape. China's "phantom regent" and very real military commander-in-chief Jiang Zemin finally stepped down last month, yielding to moderate reformer Hu Jintao (now president, party chief and military commander) and his ally Premier Wen Jiabao. Jiang, however, had been the patron and protector of the powerful Shanghai Clique, with its vested interests and opposition to vital economic reforms, such as the need to cool the galloping Chinese economy and curb unnecessary investments.

And what of Jiang's proteges, some of them quite influential and stubborn about implementing Hu's reforms, the senior people who got their start years ago on the east coast near Shanghai and Shandong province? Many of them now seem to be turning their backs on their old boss, ever survivors and weather vanes, adapting to the new political scene.

This is evident from the list of delegates who accompanied Premier Wen on his recent visit to Russia and Kyrgyzstan. It included at least 11 ministerial officials, such as Vice Premier Wu Yi, Foreign Minister Li Zhaoxing, Minister of Communications Zhang Chunxian - a staunch ally of Jiang - and Minister of Commerce Bo Xilai. In sharp contrast, there were only three such officials accompanying Wen on his visit in May to the European Union, one of China's most important economic and political partners.

China experts explain that in May, most of the economic cooling-off policies initiated by Wen were met with strong opposition from some central and local officials, who deemed these measures a big threat to their vested interests in encouraging investment and headlong growth. Both President Hu and Premier Wen then admitted that the enforcement of the economic cooling-off efforts were hindered in certain areas despite the orders from the central government.

Now, however, the Hu-Wen camp has apparently gained the upper hand. Winner take all. For those previously under the patronage of Jiang, to politely and wordlessly surrender and submit to Hu, to stop impeding economic restructuring is the wisest course of action.

Many Jiang allies ignored damning audit report
Some of the ground-shifting by some in the Jiang faction was even more thinly veiled. In June, Li Jinhua, auditor general of the Chinese National Audit Office (CNAO), released the 2003 audit report stating the misdeeds of some central governmental organs and state-run enterprises. Most of the accused had long been regarded as the domains of Jiang Zemin, such as the education, banking and communication sectors, and many of those implicated simply remained silent, declining to rebut or refute the charges, while some of Jiang's proteges refuted the allegations point by point.

All of a sudden, those who had been cited and censured in the report - those who had been silent or defiant - began to pledge support for the national auditing work; their awakening came in late September after Jiang finally bowed out. According to reports by state-run media on September 23, Communications Minister Zhang Chunxian - one of Jiang's big supporters - wrote the top auditor a thank-you letter, pledging support to the national audit office's supervision over his ministry and vowing to improve internal management and strictly comply with the rules. Zhang's grandiloquence on the virtues of the audit was soon followed by other formerly pro-Jiang departments and enterprises, including the Education Ministry, the State Grid Corporation of China and the Industrial and Commercial Bank of China, one of the major national banks.

But just a couple of months ago, the crusading auditor general was not sitting pretty; neither was he comfortable nor confident. On July 19, a joint opinion poll conducted by the official Xinhua News Agency and China Youth Daily, a popular journal among young Chinese, showed that some 76% of those surveyed expressed considerable concern over the safety of top auditor Li Jinhua, saying they feared he might suffer retaliation from those whose work and ethics he had criticized.

Obviously, there are good reasons for worry. On June 23 the CNAO headed by Li had unfurled its sweeping, specific and devastating report of a problematic and ethically challenged bureaucracy. Five days later, Premier Wen voiced support for the work of CNAO, while all the departments that were severely criticized in the report reserved their judgments until very recently. They included the ministries of finance, civil affairs and agriculture, as well as the state-owned assets supervision and administration commission and the national development and reform commission, to name but a few, according to the official Xinhua-sponsored Oriental Outlook journal.

"Their reluctance to make their stance clear is understandable to some extent. As a rule, it is riskier to be the first speaker ... Choosing to remain silent may protect their departments, but it takes a heavy toll on the image of the whole government," according to Dr Xin Ming of the Chinese Communist Party Central School, where the ruling party's most promising future leaders are further educated and groomed.

The big question: Which way does the wind blow?
Nowadays, the fence-sitting bureaucracy prevails in the country's political arena: always make sure which way the wind is blowing before you follow. For instance, the usually quiet and noncommittal Vice Premier Huang Ju inspected the Construction Bank of China Stockholding Inc, established on September 21 shortly after the party meeting when Jiang stepped down; his visit highlighted the importance of reforming state-owned commercial banks into stock companies.

The reform of state-owned banks is a major component of the macro-control portfolio doggedly pushed by Premier Wen, a steadfast ally of reformist President Hu. Yet, the macro-control policies had encountered huge resistance from conservative central and local authorities led by the Shanghai Clique of Jiang Zemin, until recently China's military strongman and the backroom regent. Now that resistance is dissipating, to say the least.

A ringmaster of the Shanghai Clique, master of the political weather vane, Vice Premier Huang, has suddenly made a U-turn after Jiang Zemin relinquished the post of chairman of the Chinese Communist Party's (CCP) Central Military Committee, and now attempts to seek favor with the premier in order to maintain his position through the 17th CCP National Congress, a major political conference to convene in 2007.

Even governments at local levels sensed which way the political winds were blowing and turned their political antenna the same way. Three days after the fourth plenum of the 16th CCP National Congress closed on September 19, the CCP Committee of South China's Guangdong province issued a circular calling for the administration to be "more scientific, democratic and systematic" (read: pro-Hu Jintao and his reformist principles), as spelled out at last month's momentous convention. By contrast, a late-August conference of the CCP Guangdong Committee concluded that the province was under threat of "westernization and splittism" (read: anti-Hu and Wen code words.) Westernization and splittism, virtually anathema to good communists, were interpreted by analysts as assailing the intra-party democratic reform spearheaded by Hu and Wen.

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Oct 13, 2004
Asia Times Online Community



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