Analysis: Behind Xi Jinping’s Risky Grab of Chinese Billionaire Xiao Jianhua

Analysis: Behind Xi Jinping’s Risky Grab of Chinese Billionaire Xiao Jianhua
Chinese leader Xi Jinping attends the World Economic Forum in Davos on Jan. 17, 2017. Fabrice Coffrini/AFP/Getty Images
Larry Ong
Journalist
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In seeking to consolidate power and erode the influence of a rival political faction, Chinese leader Xi Jinping has elected to go slow and steady over the past four years.

The arrests of former Chinese leader Jiang Zemin’s key allies—including ex-security czar Zhou Yongkang and former military vice chairs Xu Caihou and Guo Boxiong—were preceded by months of investigating lower-ranking cronies.

It was only after Xi spent two years purging officers loyal to Jiang that he appeared to formally signal his control over the military, by holding a grand parade in 2015 and later taking on the new title of commander in chief of a new joint battle command center. Recent investigations and abrupt “retirements” for officers suggest that the cleanup of the People’s Liberation Army is still underway.

But Xi has recently made a bold and risky play by bringing into custody prominent Chinese billionaire Xiao Jianhua—a move that puts Xi on very shaky ground but gives him significant leverage against the Jiang faction.

Xiao Jianhua, a Chinese-born Canadian billionaire, reads a book outside the International Finance Centre in Hong Kong in December 2013. (AP Photo/Next Magazine)
Xiao Jianhua, a Chinese-born Canadian billionaire, reads a book outside the International Finance Centre in Hong Kong in December 2013. AP Photo/Next Magazine
Larry Ong
Larry Ong
Journalist
Larry Ong is a New York-based journalist with Epoch Times. He writes about China and Hong Kong. He is also a graduate of the National University of Singapore, where he read history.