From: Aftenposten
Date: 14.11.2007


C O N F I D E N T I A L SECTION 01 OF 05 BEIJING 007107
SIPDIS
E.O. 12958: DECL: 11/14/2032 
TAGS: PGOV, CH 
SUBJECT: CONTACTS ON NEW POLITBURO STANDING COMMITTEE 
MEMBER XI JINPING'S RISE, NEW LEADERSHIP LINEUP
REF: A. BEIJING 7004 
B. BEIJING 6940 (NOTAL) 
C. BEIJING 6777 AND PREVIOUS
Classified By: Political Minister Counselor Aubrey Carlson. Reasons 1.4 
(b) and (d).
 

Summary 
-------

1. (C) Many Embassy contacts have told Poloffs that 
the elevation of "fifth generation" leaders Xi Jinping 
and Li Keqiang to the Politburo Standing Committee 
(PBSC) at the recently completed 17th Communist Party 
Congress (Ref A) may be the Congress's most 
significant outcome. Anointing Xi and Li as China's 
next leaders largely determines the outlines of 
Chinese elite politics for the next fifteen years. In 
the end, Xi Jinping was reportedly ranked ahead of Hu 
Jintao protege Li Keqiang because of Xi's broad 
acceptability within the Party. The support Xi 
garnered from Party elders and "princelings" as the 
son of well-respected early revolutionary Xi Zhongxun 
and a desire to check the influence of Hu Jintao and 
the Communist Youth League (CYL) were also important 
factors in his rise. One source claimed that Hu 
Jintao himself put forward Xi Jinping's name as the 
leading fifth generation PBSC member after his first 
choice Li Keqiang ran into opposition from Party 
elders. Contacts also speculated about impending 
government personnel changes at the March 2008 
National People's Congress (NPC) and offered personal 
insights on new PBSC member He Guoqiang and new 
Politburo member Li Yuanchao. End Summary.

China's New Leadership: Eyes on 2012, Party Stability 
-----------------------------------------------------

2. (C) In the wake of China's 17th Communist Party 
Congress and the unveiling of the Party's new 
leadership lineup on October 22 (Ref C), a range of 
contacts have told us that China's new leaders were 
chosen primarily to maintain a balance within the 
Party among various interests, thereby ensuring a 
stable leadership succession in 2012, when current 
General Secretary Hu Jintao is expected to step down. 
Although Beijing observers have commented extensively 
about what the Congress meant in terms of Hu Jintao's 
power (Ref A), many have also said that the Congress' 
most significant outcome may in fact have been the 
elevation of Xi Jinping and Li Keqiang to the PBSC, 
thereby anointing those two as China's next generation 
of leaders and largely setting the general outlines of 
Party leadership politics for the next fifteen years.

3. (C) Immediately following the unveiling of the new 
leaders on October 22, XXXXX, an official 
in XXXXX with close ties to Central Party School 
officials, told Poloff that the overriding message of 
the lineup was that it is "super stable" and 
represents a "highly appropriate balance" of competing 
Party interests. XXXXX separately agreed, 
commenting on November 1 that the new lineup, 
particularly the selection of the "princeling" Xi 
Jinping balanced by Hu protege and former CYL head Li 
Keqiang, provides "something for everyone," thereby 
guaranteeing relative harmony among competing Party 
factions for at least the next five years. XXXXX,
senior journalist at the XXXXX, said that 
while "perhaps not ideal," the leadership lineup 
nevertheless is designed to guarantee that politics at 
the CCP's top remains balanced, thereby ensuring no 
"radical changes" in either the Party's leadership or 
its general policy direction in 2012 and beyond.

Xi Jinping's Popularity 
-----------------------

4. (C) The decision to elevate former Shanghai Party 
Secretary Xi Jinping to the PBSC, and to rank him 
ahead of purported Hu Jintao favorite Li Keqiang, was 
due in large part to the broadly favorable opinion 
toward Xi within the Party, according to a number of 
contacts. XXXXX told Poloff 
on October 26 that Xi's support within the Party was 
demonstrated in part by a "straw poll" carried out at 
the Central Party School on June 25, immediately after 
Hu Jintao delivered his speech there previewing his 
Congress Political Report. The 400 Party officials 
present at the June 25 speech were asked to provide 
feedback on a list of 200 candidates for the PBSC. Xi 
did very well in this "survey," XXXXX said on October 
26, surmising that he also did "very well" in the 
Congress voting for the Central Committee, likely 
finishing "far ahead" of Li Keqiang.

5. (C) Zhang Zhijun of the CCP International Liaison 
Department provided the official propaganda line on 
the June 25 "vote" when on October 24 he told a group 
of foreign diplomats, including Poloffs, that the 
Party had employed a "democratic nomination process" 
on June 25 involving 400 senior officials who, 
following Hu's speech earlier that day, "created" a 
list of nominees to newly enter the Politburo from 
among a roll of 200 qualified "candidates." Zhang 
called this a true demonstration of "inner-Party 
democracy." Separately, XXXXX and close associate of Ministry 
of Civil Affairs officials in Beijing, told Poloff on 
October 25 that the real purpose of the June 25 "vote" 
was to generate a list of the most "viable" new 
candidates for the Politburo, which could then be 
thoroughly "scrubbed" to ensure that popular 
candidates had "no major flaws" in terms of their 
prior performance, health or integrity. The CPS's 
XXXXX said that Xi is acceptable to Hu for a variety of 
reasons, but Hu "simply could not ignore" the "obvious 
support" for Xi within the Party, particularly since 
Hu had stressed that the opinions of other Party 
members and even the public should be taken into 
account in selecting the Party's new leaders.

6. (C) The sources of Xi's purported popularity are 
said to be many. First, several contacts pointed to 
Xi's status as son of Xi Zhongxun, an early 
revolutionary who later became Party Secretary of 
Guangdong and both Politburo member and Vice Premier 
under Deng Xiaoping. According to
XXXXX, Xi's father's status "virtually 
ensured" Xi broad support within the Party, given the 
elder Xi's credentials as both a revolutionary and a 
Deng Xiaoping ally in promoting reform. Moreover, 
XXXXX said, Xi Zhongxun's role as a military leader in 
the revolution has helped Xi Jinping garner support 
from the PLA. Second, contacts say, almost everyone 
"likes" Xi Jinping because, unlike many other 
princelings, he is "not arrogant" and instead is low- 
key, humble and self-effacing. XXXXX, who has direct access to 
Zhongnanhai, told Poloff October 23 that Xi is well 
liked by "nearly everyone" and has a great network of 
contacts across China, which in the PRC is still more 
important than one's talent. XXXXX 
contrasted Xi's low-key manner with that of other 
princelings such as former PBSC Member Chen Yun's son, 
Chen Yuan, who apparently greatly angered Deng 
Xiaoping many years ago by issuing a "declaration" 
calling for the princelings to "rule" China. Third, 
there is a general perception within the Party, 
according to both XXXXX and XXXXX, 
that Xi has a great deal of experience in governing at 
a variety of levels, having served in Hebei, Fujian, 
Zhejiang and Shanghai, in positions ranging from a 
county-level official to Provincial Party Secretary. 
(Note: XXXXX said he has known Xi since XXXXX, it was obvious that Xi had a 
bright future, given his ability and great attitude, 
though XXXXX "never dreamed" Xi would be in line to 
become the Communist Party's next General Secretary.)

Xi as "Compromise Candidate" 
----------------------------

7. (C) While Xi's popularity and broad support 
certainly played a role in his elevation, several 
contacts stressed these factors came into play only 
after intense jockeying over the Party's most senior 
posts, with Xi in the end becoming the "compromise 
candidate" acceptable to all, even to Hu Jintao. 
According to XXXXX, a collection of "Party elders," including 
but not limited to Jiang Zemin, challenged Hu's 
initial proposal to elevate Li Keqiang as his 
successor by arguing Li "lacked sufficient 
experience." Initially, XXXXX claimed in a November 8 
discussion with Poloffs, these "elders" offered no 
alternative but made clear they would not accept Li 
Keqiang in the "heir apparent" slot. Hu Jintao 
allegedly then came back with two choices of "fifth 
generation" leaders as candidates to be placed ahead 
of Li Keqiang on the PBSC: Minister of Commerce Bo 
Xilai and Xi Jinping. The choice, XXXXX said, was 
"obvious," given the younger Bo's unpopularity in many 
quarters within the Party. Also as part of the deal 
for having Li Keqiang "take a step back," Zeng 
Qinghong agreed to step down, XXXXX claimed.

8. (C) XXXXX separately told 
Poloff that he also understood that Zeng Qinghong's 
stepping down was part of a "package deal" to elevate 
Xi ahead of Li Keqiang. He also said that in his 
view, Xi Jinping's promotion to Shanghai Party 
Secretary in March 2007 "previewed" his later 
promotion to the PBSC. At that time, XXXXX claimed, 
Hu was pushing for United Front Work Department Head 
Liu Yandong to go to Shanghai, but Jiang Zemin and 
Zeng Qinghong were backing Xi Jinping. In the end, Hu 
relented and agreed on Xi, agreeing to accept Xi even 
though he was not his first choice. XXXXX argued that 
the elevation of Xi to the PBSC last month followed a 
"nearly identical dynamic."

Checking Hu, Protecting Princeling Interests 
--------------------------------------------

9. (C) Other contacts emphasized the desire to check 
the influence of Hu Jintao and the CYL and the 
perceived need to protect "princeling" interests as 
being behind Xi's rise. XXXXX, for example, said 
Xi Jinping's promotion should be viewed as a "direct 
reaction" among Party elders, the remnants of the 
Shanghai faction and others to the growing power of Hu 
Jintao and the CYL. XXXXX
similarly told Poloff on October 24 that Xi is on the 
PBSC primarily because "Party elders" want him there, 
as they feel they "know" Xi and are "comfortable" with 
having him groomed to succeed Hu. Freelance 
journalist XXXXX agreed, though he thought that 
Party elders were primarily concerned with having 
someone "conservative" like Xi in place who will not 
threaten their "vested interests." XXXXX also played up the support of Party 
elder families and their "princeling" offspring, 
arguing that ever since the 1989 Tiananmen protests 
and the 1991 collapse of the Soviet Union, a number of 
Party elders have been pushing for placing their 
progeny atop the Party, believing that only their own 
offspring can be trusted to run the country. Xi 
Jinping is proof of the elders' and princelings' 
influence, XXXXX said, calling Xi's elevation the 
beginning of the "return of the Princelings."

Comparing Xi to Li Keqiang 
--------------------------

10. (C) While such "factional" balancing appears to 
have played a key role in the decision to elevate Xi 
ahead of Li, contacts have said Li Keqiang was more 
vulnerable than Xi for other reasons as the leaders 
jockeyed for PBSC slots. XXXXX 
commented that, for many Party leaders outside the 
CYL, it was not so much that they do not trust Li 
Keqiang as much as they simply "do not know him." 
XXXXX described Li Keqiang as an "intellectual" 
closely identified with Hu Jintao who rose through the 
ranks of the CYL. In that sense, Li simply does not 
compare well to someone like Xi, the son of a 
prominent revolutionary who was much more widely known 
and revered. Moreover, many people argued that Li 
does not have such great accomplishments to show for 
his time in Henan and Liaoning provinces. While Li 
may not have run into such great problems, he has no 
great achievement to point to, XXXXX said. 
Separately, the XXXXX 
agreed, arguing that Li simply does not have the kind 
of experience or accomplishments that would qualify 
him to be the country's next Party General Secretary.

11. (C) Contacts who underscored Li's strengths 
similarly noted that CYL stereotypes and his career 
background worked against him. XXXXX said he was XXXXX at 
the same time as Li, calling him "smart," a good 
student and a "good person." The overwhelming 
impression Li gave was that of a "good Party 
bureaucrat." XXXXX, who has had ties to Li Keqiang 
going back a decade or more, said that Li Keqiang is 
"highly capable" and is also low-key, polite and 
respectful of Party elders, even though he simply was 
not their first choice for the top slot. XXXXX also 
thought that Li comes across as a good CYL cadre, 
exhorting the Party "troops" to do great work and 
citing the correct Party slogans. By contrast, XXXXX 
said, Xi comes across as a more confident, forceful 
leader, despite being low-key. XXXXX 
argued that Li Keqiang is "more open, more Western" 
than Xi Jinping, givn his undergraduate legal 
education at PekingUniversity. Xi Jinping, by 
contrast, receive a more "Leftist, Marxist" 
education, even though he supposedly has a doctorate 
in "law." XXXXX conceded, however, that Li had to deal 
with the "unpopularity" of the CYL in certain quarters 
within the Party, with some believing that CYL cadres 
are too "bureaucratic" and are simply "careerists" 
worried mostly about their next promotion, thereby 
putting "form" ahead of "substance."

12. (C) In the end, XXXXX opined, neither Xi 
nor Li are "ideal" leaders in a "scientific" sense, 
given that both are relatively junior and lacking in 
experience. XXXXX also agreed that neither Xi nor 
Li has as much experience as a Chinese leader should 
have. Nevertheless, they are the two leaders the 
system clearly has chosen to lead the country. Under 
this system, one's loyalty and connections (Xi's to 
the Party elders and Li's to Hu Jintao) counted more 
in the end than their ability. XXXXX
posited that Li and Xi share many similarities, 
despite their different backgrounds and bases of 
support. Both will likely seek stability of the CCP 
ruling system above all, XXXXX speculated, but Li is 
more likely to seek stability by dealing with 
inequality and various social problems by 
redistributing wealth. Xi, on the other hand, may be 
more likely to use coercive means to keep the CCP, and 
princelings, in power.

Speculation on Impending Government Appointments 
------------------------------------------------

13. (C) Two contacts speculated on the impending high- 
level government personnel changes slated for the 
March 2008 National People's Congress (NPC). XXXXX said his "best contacts" tell him that Li Keqiang will 
become Executive Vice Premier, replacing the deceased 
Huang Ju. Zhang Dejiang will be Vice Premier in place 
of Wu Yi, while Wang Qishan will be Vice Premier 
replacing Zeng Peiyan. Meanwhile, Hua Liangyu will 
stay on as Vice Premier. CPS Professor XXXXX 
agreed that Li Keqiang is headed for the Executive 
Vice Premier slot but said he had heard that it is 
Wang Qishan that will replace Madame Wu Yi, not Zhang 
Dejiang. XXXXX said he had also heard that Zhang 
Dejiang may end up staying put as a Party Secretary 
"out in the provinces." As for the Vice President's 
slot that will be vacated in March by Zeng Qinghong, 
who has already stepped down from the PBSC, XXXXX said 
he expected Xi Jinping, as heir apparent, to take over 
this position. It is, however, still possible that 
the post could be left vacant for a short while. 
Regardless, XXXXX thought the chances of giving the 
Vice Presidency to a non-Party person, as had been 
done previously, were "quite low."

---------------------------------------------

14. (C) Well-connected XXXXX told Poloff that XXXXX.
(Note: XXXXX said. XXXXX. The CDIC portfolio is 
"incredibly difficult" and must be filled by someone 
"everyone in the Party" can trust, XXXXX said. Given 
that He is well-known for being low-key and "not 
aggressive," it is likely that he was acceptable to 
all in the CDIC slot, given that many people fear the 
use of anti-corruption investigations as political 
weapons.

15. (C) XXXXX said that his impression is that He 
Guoqiang has a "relatively favorable" attitude toward 
the United States, believing that the United States 
should be recognized for its political and economic 
accomplishments but that not all of its lessons can be 
"transplanted" to China. XXXXX.

Li Yuanchao's "Huge Step Up" 
----------------------------

16. (C) XXXXX provided Poloffs with 
comments on Li Yuanchao, the former Jiangsu Party 
Secretary and Hu Jintao protege who was recently 
promoted to the Politburo, where he has been made head 
of the Party's Central Organization Department. XXXXX
said he knows Li Yuanchao well, as XXXXX. In recent years,
Li's wife lived in Beijing teaching music, traveling back to 
Jiangsu for weekends with her husband. Li's wife 
reportedly recently told XXXXX that, with her husband's 
promotion to the Politburo, her "long march" is "over" 
and she has recently moved into quarters in 
Zhongnanhai. Li Yuanchao has made his "fair share of 
enemies" over the years, XXXXX claimed, though he 
speculated that everyone would "kiss his ring" now, 
given his important new position. XXXXX said that Li 
Yuanchao's promotion to Organization Department Head 
is a "huge step up," given that Li will now control 
the fate of many people in China. While Li may have a 
hard time influencing those above him, all of the 
leaders' factional networks will fall under his 
authority. XXXXX expressed a similar view 
on Li's power, but provided a somewhat different 
perspective on the political dynamics associated with 
Li's position. In response to Poloff's observation 
that some people think PBSC Member He, as former 
Organization Department head and Zeng Qinghong 
protege, would have a large influence over Li's 
decisions, XXXXX said that Li's close relationship to Hu 
Jintao would pose a significant check on He's power. 
Although He retained top authority over the Party's 
personnel system, he would be reluctant to overrule 
Li's decisions.

PICCUTA