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What happened to China’s former leader Hu Jintao? | CNN

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What happened to China’s former leader Hu Jintao? | CNN



CNN
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It’s a second that for a lot of observers has come to outline strongman chief Xi Jinping’s tightening grip on China: his visibly frail predecessor, Hu Jintao, being escorted out of a key Communist Occasion assembly throughout a five-yearly management reshuffle – apparently at Xi’s behest.

Photos of two males ushering the 79-year-old from his seat and towards the exit have been beamed the world over because the celebration’s Nationwide Congress got here to an in depth Saturday, resulting in days of hypothesis over whether or not Hu was the sufferer of a intentionally public energy play.

This week, these rumors have solely grown – regardless of a declare by Chinese language state media on Twitter that Hu left on account of ill-health – and the intrigue is more likely to develop additional nonetheless with the discharge of footage exhibiting the 90 seconds main as much as his sudden elimination.

The footage, launched by Singapore broadcaster CNA on Tuesday, reveals a sequence of high-level exchanges between senior celebration leaders, by which Hu is repeatedly prevented from taking a look at official paperwork in entrance of him.

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It reveals Li Zhanshu, the celebration’s outgoing number-three official, who’s sitting subsequent to Hu on the entrance desk on stage, take the paperwork from Hu’s hand and place them beneath a pink folder. When Hu then reaches for the paperwork, Li pulls them away.

Xi, who’s sat on Hu’s different aspect, glances on the exchanges and summons a senior aide to whom he speaks briefly. Moments later, a second aide hurries over, receives an instruction from Xi, then speaks to an apparently nonplussed Hu.

As per the footage that circulated on Saturday, Hu – who seems reluctant to depart – is then lifted from his chair, taken by the arm and escorted out.

Not one of the footage – both that launched on Saturday or Tuesday – has been broadcast in China. Neither has the incident been reported in Chinese language language media, or mentioned on Chinese language social media, the place conversations round senior leaders are extremely restricted.

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Late on Saturday evening, China’s official Xinhua information company tweeted in English that Hu “insisted on attending” the closing ceremony regardless of his poor well being and was escorted out after feeling unwell. Nonetheless, inside China, the place Twitter is blocked, the incident was not talked about.

On Weibo, censors even restricted the search outcomes for obscure key phrases corresponding to “escorted away” or “leaving the assembly,” in an obvious effort to stop customers from making veiled references to the incident, based on Eric Liu, a censorship analyst with China Digital Instances.

Tuesday’s footage has fueled fervent hypothesis about what was within the doc and why Hu was not allowed to see it – and left observers divided over what sparked his exit.

Some keep it was possible on account of Hu’s poor well being or psychological state – after retiring in 2013, he has been seen in public wanting more and more frail. Others recommend it might be a deliberate energy play by Xi to point out his unequalled authority.

Former Chinese leader Hu Jintao is taken by the arm and escorted out.

Like many unexplained episodes within the black field of elite Chinese language politics, the true motive behind Hu’s surprising departure might by no means be recognized. However consultants say the symbolism – unintended or in any other case – is difficult to overlook: Having eradicated any vestige of affect from celebration elders or rival factions, Xi has ushered in a brand new period of one-man rule surrounded by solely staunch loyalists.

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In the meantime, gone with Hu are the numerous hallmarks that had outlined his decade in energy throughout which he presided over a interval of double-digit financial development and comparative openness.

Hu additionally relinquished each his celebration and army posts when he retired in 2012 after two phrases in energy – incomes him reward from Xi for “his broad thoughts and noble character.”

Whereas Hu was by no means as highly effective as Xi is now – owing partially to the mannequin of collective management and the balancing affect of a number of celebration factions and elders, together with his predecessor Jiang Zemin – he was related to a faction linked to the Communist Youth League, a as soon as highly effective grouping whose affect has diminished significantly throughout Xi’s rule.

Steve Tsang, director of the SOAS China Institute on the College of London, mentioned the newest footage suggests Hu’s dramatic exit was possible not deliberate.

“For no matter causes, Xi ordered Hu to be escorted out when he should have thought that Hu may not behave precisely as Xi would have wished,” he mentioned.

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The brand new video has been interpreted by some as an indication of Hu’s supposed displeasure with the result of the Congress, which noticed Xi consolidate his energy by stacking the brand new management workforce along with his loyal allies and proteges.

Premier Li Keqiang and Wang Yang, head of China’s prime advisory physique, each retired from the celebration’s supreme Politburo Standing Committee, regardless of being one 12 months under the unofficial retirement age of 68. Each Li and Wang are seen as nearer to Hu’s sphere of affect.

In an much more shocking revelation on Sunday, Vice Premier Hu Chunhua, one other protege of the elder Hu (the 2 aren’t associated), was dropped from the brand new 24-member Politburo. As soon as seen as a rising star being groomed for the highest management, Hu Chunhua’s political future has dimmed beneath Xi.

However Wen-Ti Sung, a political scientist on the Australian Nationwide College, mentioned a deliberate public purge on the closing of the congress was unlikely, given the celebration’s emphasis on unity.

“The Chinese language Communist Occasion prizes the picture of unity and management, and extra so than ever throughout the Xi period,” mentioned Sung.

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If Xi had wished to purge Hu to stop the previous chief from elevating objections in public, he would have executed so earlier than overseas press have been allowed into the auditorium, Sung mentioned.

“A high-profile purge of Hu at a vital juncture just like the twentieth Occasion Congress reveals the presence of dissent, and the notion that Xi is a minimum of ‘challengeable,’” he mentioned. “Neither is nice for Xi’s picture of invincibility.”

Many observers have been additionally struck by the obvious coldness of the opposite leaders on the stage. Few confirmed any concern for Hu, and plenty of averted wanting in his path.

“There’s no empathy,” mentioned Alfred Wu, an affiliate professor on the Lee Kuan Yew Faculty of Public Coverage on the Nationwide College of Singapore.

To rise by way of the celebration, officers have discovered to cover their private feelings and traits, Wu mentioned, “They simply attempt to be like a machine within the celebration equipment.”

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On his manner out, Hu patted the shoulder of his protege, Premier Li, who nodded and turned briefly to observe him stroll away. Subsequent to Li, Wang sat upright and stared straight forward, seemingly frozen in movement.

Former Chinese leader Hu Jintao pats the shoulder of his protege, Premier Li Keqiang.

Additional down the sting of the stage, Hu Chunhua didn’t even solid a look towards the celebration elder as he handed by. As a substitute, he appeared straight forward with a notable frown and arms folded throughout his chest.

However even when the actual motive for the elder Hu’s departure by no means turns into clear, the incident has however despatched an unequivocal message about Xi’s absolute maintain on energy, analysts say.

Hu’s undignified exit confirmed that “Xi had lowered the as soon as highly effective (Communist) Youth League faction to insignificance,” mentioned Tsang on the College of London.

“With no successor in sight, and the earlier chief humiliated, Xi had projected to the celebration that…nobody within the celebration ought to look over his shoulder for one more chief, be him the long run or the previous chief,” Tsang mentioned.

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“Now there is just one chief in China.”

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Macy’s says employee hid more than $132mn in delivery expenses

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Macy’s says employee hid more than 2mn in delivery expenses

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Macy’s has delayed the release of its third-quarter results after the US retailer revealed that an employee had hidden more than $132mn of delivery expenses since late 2021.

The group said in a securities filing on Monday that an employee had “intentionally made erroneous accounting accrual entries” to hide $132mn to $154mn of cumulative delivery expenses between its fourth quarter of 2021 and the quarter ended November 2 2024.

It said it had launched an independent investigation. There was “no indication” of any adverse effect on its cash management or payments.

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The individual was no longer at the company, Macy’s added.

Macy’s was due to report results on Tuesday, but, owing to the expenses issue, instead released preliminary results on Monday morning. Its third-quarter sales fell slightly more than analysts expected to $7.74bn in the three months ending on November 2.

Macy’s shares were down more than 3 per cent in pre-market trading.

This is a developing story

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What Trump's pick for Treasury secretary could mean for global markets

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What Trump's pick for Treasury secretary could mean for global markets

Scott Bessent speaks at the National Conservative Conference in Washington D.C., Wednesday, July 10, 2024.

Dominic Gwinn | Afp | Getty Images

Financial markets on Monday welcomed President-elect Donald Trump’s pick for U.S. Treasury secretary, with currencies across the globe rallying on hopes that hedge fund manager Scott Bessent can take some of the sting out of Trump’s more extreme economic views.

The U.S. dollar index, which measures the greenback against six major currencies, fell 0.5% to 107.01 on Monday, paring some of its recent gains after a remarkable rally since late September.

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The euro was a top performer, rising 0.7% to trade at $1.049 at 12:50 p.m. London time. The Japanese yen, pound sterling and Antipodean currencies were also trading higher against the dollar.

The moves come as global investors reacted to news from late Friday that Trump signaled his intention to nominate Bessent to lead one of the most influential roles in U.S. government. The Treasury Department has broad oversight of tax policy, public debt and international finance.

Strategists regard Bessent, the founder of Connecticut-based investment firm Key Square Group, as a “safe pair of hands,” a well-known market participant and a more moderate pick compared to some of his rivals.

It is expected the 62-year-old will push for Trump to consider a softer approach to tariffs, strip back regulation to boost growth and target a reduction in deficit spending.

“Trump’s pick for Treasury Secretary has swelled investor sentiment further with stocks on Wall Street looking set for another flurry of gains,” Susannah Streeter, head of money and markets at Hargreaves Lansdown, said in a research note.

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“Hedge fund manager Scott Bessent’s long career of navigating the twists and turns of markets, has boosted confidence about incoming pro-business policies and lifted hopes that any tariffs would be highly targeted and potentially less inflationary in nature,” she added.

A ‘layered’ approach to tariffs

Trump’s historic election victory earlier this month ratcheted up concerns about the prospect for higher prices, prompting strategists to rethink the outlook for global bond yields and currencies.

It is widely thought that Trump’s pledge to introduce tax cuts and steep tariffs could boost U.S. economic growth — but widen the fiscal deficit and refuel inflation.

An employee sorts navel oranges at a fruit processing factory of Nongfu Spring on November 23, 2024 in Xinfeng County, Ganzhou City, Jiangxi Province of China.

China News Service | China News Service | Getty Images

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In an effort to raise revenues, Trump has suggested he could impose a blanket 20% tariff on all goods imported into the U.S., with a tariff of up to 60% for Chinese products and one as high as 2,000% on vehicles built in Mexico.

While many economists are skeptical about the effectiveness of tariffs, Bessent has defended them as “a useful tool for achieving the president’s foreign policy objectives.” He has also, however, called for tariffs to be “layered in” gradually.

“News that Scott Bessent is the top choice for incoming US Treasury Minister has raised the possibility that some ‘Trump trades’ may be watered down,” analysts at Rabobank said in a research note.

“Bessent, a successful macro hedge fund manager, is associated with a preference to reduce the US budget deficit to 3% of GDP, which clearly suggests less appetite for deficit spending,” they added.

Bessent, who once worked for billionaire philanthropist and investor George Soros, has advocated for a so-called “3-3-3” target, which refers to a plan to cut the deficit to 3% by 2028, achieve 3% economic growth and add 3 million new barrels of oil per day.

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Business as usual?

Some strategists expect Trump’s Treasury chief pick to be welcomed as good news for Asian currencies over the coming months.

“The market view that Bessent is a ‘safe hands’ candidate, may see some relief rally in Treasuries from the open on Monday, as the risk of a more unorthodox candidate is priced out,” Scott Spratt, strategist at Societe Generale Corporate and Investment Banking, said in a research note.

“We suspect his view that tariffs should be ‘layered’ and that initial levels being discussed are ‘maximalist’ positions, should also provide an opening boost to Asia FX and [the Chinese yuan],” he added.

U.S. President-elect Donald Trump prepares to exit after viewing the launch of the sixth test flight of the SpaceX Starship rocket in Brownsville, Texas, U.S., November 19, 2024. 

Brandon Bell | Via Reuters

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Tesla CEO Elon Musk suggested that nominating Bessent as Treasury chief would be a disappointment. In a social media post via X on Nov. 16, Musk described Bessent as a “business-as-usual choice,” adding that “business-as-usual is driving America bankrupt.”

Bessent has also been an advocate of Trump’s embrace of the crypto industry, which means he could soon become the first Treasury chief openly in favor of crypto assets. Trump has previously pledged to make America “the crypto capital of the planet.”

Bitcoin breached the $99,000 level for the first time last week as investors continue to price in Trump’s return to the White House.

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Northvolt dilemma: Can European EVs avoid relying on Asian batteries?

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Northvolt dilemma: Can European EVs avoid relying on Asian batteries?

Two months before Northvolt filed for bankruptcy in the US, Robin Zeng, known as China’s “battery king”, had a quick but grim answer as to why European battery makers were struggling to make good products.

“They have a wrong design . . . they have a wrong process . . . and they have the wrong equipment. How can they scale up?” the chief executive of CATL told Nicolai Tangen, the head of Norway’s $1.8tn oil fund. “So almost all mistakes together.”

The bleak assessment from the world’s biggest electric vehicle battery manufacturer captures the scale of the failure for the industries behind the critical technology for Europe’s decarbonisation, leaving governments, companies and investors at a loss as to how to recraft the continent’s strategy to compete with China.

“How are we not taking this more seriously? The European car industry is the heartland of European industry’s supposed prowess,” said one long-standing investor in Northvolt after the collapse into US bankruptcy last week of Europe’s biggest battery hope. “The depth of the crisis for the European car industry is almost unlimited. It’s incredibly grim.”

Brussels took its first steps to establish a battery supply chain across Europe in 2017, with Northvolt at the heart of its ambitions. The bloc has since increased its share of the global battery market from 3 per cent to 17 per cent with annual turnover of €81bn in 2023 after spending more than €6bn of the EU budget to support cross-border battery projects and research and innovation.

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But in terms of EV batteries, Asian participants including CATL, BYD, and LG Energy Solution and SK On of South Korea, control about 70 per cent of the global market. Many of the 30 gigafactory projects in Europe have also been designed and built with the help of Chinese and Korean companies.

Northvolt chief executive Peter Carlsson. The Swedish group was at the heart of Brussels’ ambitions to establish a battery supply chain across Europe © Charlie Bibby/FT
Robin Zeng
CATL chief executive Robin Zeng said European battery makers had the ‘wrong design . . . they have a wrong process . . . and they have the wrong equipment’ © Lam Yik/Bloomberg

As the EU’s ambitions have faltered, the struggles of Northvolt have come to embody the challenge the continent faces. The bloc wants to continue encouraging costly investments in the clean technologies needed to meet its ambitious climate goals, while at the same time stemming the wave of plant closures and job cuts that are already spreading across the automotive sector and heavy industries. 

“It’s fair to say we’re at a pivotal moment right now,” said Wouter IJzermans, executive director at the Batteries European Partnership Association. 

People involved in the Northvolt saga said options were narrowing for Europe to address its dependence on China and other parts of Asia for the technology and materials that will be critical as the automotive industry transitions to electric vehicles. 

Efforts are still being made by other start-ups such as France’s Verkor and Volkswagen’s battery business PowerCo, but they are facing either diminished ambitions or tougher financing prospects.

PowerCo is considering building just one out of the two production lines previously planned for its plant in Salzgitter in Germany due to slowing market demand. 

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Verkor counts Renault as its main client and recently finalised a new €1.3bn financing round to back the construction of a plant in the northern French port city of Dunkirk. But its chief executive Benoit Lemaignan said financing talks were arduous on the back of Northvolt’s woes and the slowdown in the growth of electric vehicle sales this year.

A mural of a VW electric vehicle at the construction site of the Volkswagen AG SalzGiga fuel cell gigafactory, operated by PowerCo, in Salzgitter, Germany in 2023
The Volkswagen fuel cell gigafactory under construction in Salzgitter, Germany, last year © Krisztian Bocsi/Bloomberg

“There was a whole fresh round of audit work and validation of the set-up, our chemistry, the machines and all the equipment,” Lemaignan said. “It’s not something automatic, to find financing today. It’s an issue that goes well beyond Verkor, and affects the financing of all of the energy and climate transition industries.” 

In France, there is also Automotive Cells Company, a venture backed by carmakers Stellantis and Mercedes-Benz, and oil major TotalEnergies, which started producing batteries in 2023. But this year ACC paused plans to expand further with plants in Germany and Italy as it considered switching to a lower-cost form of battery technology and adjusted to a slower EV adoption rate. 

“There are expansion phases and crisis phases, if you draw a parallel with other industries. Perhaps we’re living through the first big challenges for Europe’s battery industry. But there will be factories and there will be clients, we’re seeing that more and more,” Lemaignan said.

Consequences from Northvolt’s US bankruptcy filing are already being felt, with carmakers being forced once again to turn to their Asian suppliers to reduce their exposure to its collapse. 

Germany’s Porsche has never confirmed its relationship with Northvolt, but a person familiar with the agreement between the two companies said the Swedish start-up was contracted to make the batteries for the all-electric Porsche 718, scheduled for launch next year.

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As Northvolt’s troubles deepened, the sports-car maker began looking for alternative suppliers. While Porsche also buys batteries from South Korea’s Samsung SDI, LGES and China’s CATL, the person added that diversification was a complicated task at relatively short notice.

A cell assembly worker in the dry area of a production line at the Automotive Cells Company (ACC) gigafactory in Douvrin, France
France’s ACC, a venture backed by Stellantis, Mercedes-Benz and TotalEnergies, started producing batteries in 2023 © Nathan Laine/Bloomberg

Northvolt’s demise means the battle for dominance of the European market is likely to play out between Asian battery makers. 

LGES and SK On both have European plants, in Poland and Hungary respectively, while CATL has a factory in Germany and a second site in Hungary due to begin production next year.

But Tim Bush, a Seoul-based battery analyst at UBS, said there was little prospect at present that the Asian battery makers would be able to help the EU to meet its target for 90 per cent of the continent’s EV batteries to be produced locally by 2030.

Bush noted that Korean battery makers were already paring back their investments in Europe, having invested billions of dollars in plants in North America that have been running at low utilisation rates because of lower than expected consumer demand for EVs.

Potential Chinese battery investments on the continent were also likely to be complicated by the ongoing trade dispute between Brussels and Beijing over EU tariffs on Chinese electric vehicles, he added.

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“The Koreans are not expanding, the Chinese have suspended construction and Europe’s new entrants are dropping like flies,” said Bush.

Against such obstacles, the European Commission is weighing plans to require Chinese developers to have plants and bring their intellectual property to Europe in order to access EU subsidies, the FT has previously reported. 

With European start-ups still behind in their ability to manufacture batteries at scale, industry executives say the only solution may be to continue their reliance on Asian participants until homegrown companies can absorb technology knowhow on battery chemistry, mass production and equipment manufacturing.

“We need to find a deal with China because we won’t be able to compete . . . without the support of the Chinese companies that control the mining industry, chemicals, refining and their capacity and competence,” Luca De Meo, Renault’s chief executive, told reporters last month.

But the dilemma is how long Europe needs to wait for the technology transfers to complete, and whether it would already have lost the race by then.

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“If you really zoom out, what does Europe want to be? I really question whether Europe wants to give up yet another industry like it did with solar panels. Europe is not a leader in AI. I want my kids to grow up somewhere where there are a lot of jobs,” said a Northvolt executive.

Reporting by Kana Inagaki and Harriet Agnew in London, Patricia Nilsson in Frankfurt, Sarah White in Paris, Alice Hancock in Brussels, Christian Davies in Seoul, and Richard Milne in Oslo

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