(https://asiasociety.org/policy-institute/)
| THIS WEEK: Politburo meeting projects institutional continuity after purges, Xi balances Putin and Trump diplomacy, Beijing signals reserve-currency ambitions, “future industries” take center stage in the 15th Five-Year Plan, and Shanxi marks a clean-energy turning pointRead back issues in the China 5 Archive. |
 China’s President Xi Jinping stands with Politburo Standing Committee members at the Monument to the People’s Heroes on Martyrs’ Day in Beijing’s Tiananmen Square on September 30, 2025. (Photo by Greg Baker/AFP via Getty Images) 1. A Signal of Institutional Stability Following High-Profile Purges What Happened: On January 30, Xi Jinping chaired a routine Politburo meeting to review the annual Party affairs work reports of the National People’s Congress, the State Council, the Chinese People’s Political Consultative Conference, the Supreme People’s Court, the Supreme People’s Procuratorate, and the Chinese Communist Party Central Secretariat. The meeting also discussed “other matters,” a phrase sometimes used to conceal politically sensitive issues from public reporting. Why It Matters: The timing of this meeting — just one week after the public announcement of the purge of Politburo member and Central Military Commission Vice Chair Zhang Youxia and others — signals that Xi retains effective control over elite politics, at least outwardly. The ability to convene the Politburo as planned and proceed with routine agenda items suggests that no immediate elite resistance or procedural disruption followed the purge. The public disclosure of the purges on January 24, immediately after the conclusion of a training session for senior provincial- and ministerial-level officials on January 23 in Beijing, suggests that these officials may have been briefed internally beforehand. Taken together, this sequence indicates an effort by Xi to manage elite expectations and preserve institutional stability. The absence of visible disruption suggests that routine governance continues despite the unprecedented purges. By Lobsang Tsering, Senior Research Associate on Chinese Politics, Center for China Analysis Learn More: Check out “Unsettling Implications of Xi’s Military Purge” by CCA Senior Fellow on Chinese Politics, Christopher Johnson. 2. Xi Holds Consecutive Calls with Putin then Trump Amid Critical Negotiations What Happened: On February 4, President Xi Jinping held consecutive high-level talks with Russian President Vladimir Putin and U.S. President Donald Trump. Over video conference, Xi and Putin promised to strengthen strategic coordination on sensitive international issues, including Iran, Venezuela, and Cuba, and within major multilateral platforms, such as the United Nations, BRICS, and the Shanghai Cooperation Organization. Hours later, Xi and Trump held a phone call focused on Iran, stabilizing U.S.–China relations and managing tensions over Taiwan. Why It Matters: The back-to-back calls unfolded amid intensifying negotiations on Ukraine, greater U.S. engagement in Iran, and escalating tensions over Taiwan. By speaking with Putin first, Xi reinforced China–Russia alignment and their intent to coordinate positions on these issues through multilateral platforms in response to U.S. pressure. The sequencing also hints that Beijing may prioritize an in-person Xi–Putin meeting to consolidate alignment before Trump’s planned visit to China in April. Xi Jinping has held a number of meetings with foreign leaders recently — hosting both the British and Canadian prime ministers in Beijing in January, and plans to host the German chancellor this month —during a time when many European countries look to rebalance their relationship between the United States and China. By Jie Gao, Research Associate on Foreign Policy and National Security, Center for China Analysis Learn More: Read “China-Russia Relations Since the Start of the War in Ukraine” by CCA Senior Fellow on China–Russia Relations, Pierre Andrieu. 3. Xi Signals China’s Reserve-Currency Ambition What Happened: A new Qiushi article by Xi Jinping called for China to build a “powerful currency” — one that is widely used in global trade, investment, and foreign exchange markets, and ultimately attains reserve-currency status. The comments, drawn from an internal speech delivered in 2024, were made public for the first time. Xi also laid out the supporting infrastructure he believes China needs: a stronger central bank, globally competitive financial institutions, and international financial centers that can attract capital and influence global pricing. Why It Matters: With investors reassessing dollar exposure amid U.S. policy volatility, Beijing sees an opening to push for a more multipolar currency order. The timing of the article also coincides with the RMB’s recent appreciation. But reserve-currency demand is driven by factors such as trade settlement needs, external debt-servicing requirements, exchange-rate stabilization, and store-of-value demand. The RMB still falls short: its trade settlement share has risen substantially but remains below China’s weight in global trade, while limited capital-market depth and openness continue to constrain its appeal as a reserve currency. The biggest structural constraint is that reserve status requires market trust, while China still prioritizes capital controls and financial stability over full convertibility. By Lizzi C. Lee, Fellow on Chinese Economy, Center for China Analysis (@wstv_lizzi) Learn More: Read “Petrodollar to Digital Yuan” by CCA Senior Fellow on Chinese Economy, Diana Choyleva. 4. Politburo Sets the Tone for the 15th Five-Year Plan with “Future Industries” What Happened: On January 30, the Political Bureau of the Chinese Communist Party held its first collective study session of the opening year of the 15th Five-Year Plan (FYP), focused on the forward-looking planning and development of “future industries.” Xi Jinping presided over the session and emphasized that a new round of technological revolution and industrial transformation is accelerating, with cutting-edge technologies continuously emerging and driving the rapid rise of future industries. Xi characterized future industries as forward-looking, strategic, and disruptive, stressing that their development requires not only scientific planning but also holistic coordination. While calling for clearer identification of priority directions during the 15th FYP period, Xi also emphasized that development should be tailored to local conditions alongside stronger coordination to ensure future industries complement both emerging and traditional sectors. Why It Matters: The study session provides insights into how Beijing intends to guide industrial development under the 15th FYP. Xi emphasized that enterprises should play a leading role in driving technological breakthroughs, with innovation resources increasingly concentrated toward firms. At the same time, the state is tasked with providing policy guidance, support and effective services, including fiscal and tax measures, technology finance, talent cultivation, and recruitment. Xi further highlighted that future industries involve long cultivation cycles and high market risks, requiring stronger governance systems, a balance between development and security, and more scientifically effective regulatory approaches. Overall, the session’s emphasis on planning, holistic coordination, and calibrated development under the 15th FYP reflects a corrective response to the shortcomings during the 14th FYP, which were associated with fragmented resource allocation, one-size-fits-all industrial competition, premature commercialization, and wasteful regional duplication. By Feifei Hung, Affiliated Researcher, Center for China Analysis Learn More: “Who Briefs Xi Jinping? How Politburo Study Sessions Help to Decode Chinese Politics,” Neil Thomas, CCA Fellow on Chinese Politics, and Feifei Hung. 5. Clean Energy Installed Capacity Overtakes Coal in Shanxi What Happened: During Shanxi’s annual provincial people’s congress, it was announced that in 2025, installed capacity of new and clean energy exceeded that of coal-fire power for the first time. Last year “the installed capacity of new and clean energy hit 90.48 gigawatts, an increase of 18.29 gigawatts year on year, accounting for 55.1% of the province’s total power capacity.” Why It Matters: Shanxi province is coal-rich, so the latest news that installed clean energy capacity has overtaken coal is a significant milestone. While coal is still a substantial component of Shanxi’s energy mix, the growth in clean energy signals provincial alignment with China’s overall goal of accelerating renewable energy deployment. By Taylah Bland, Fellow on Climate and the Environment, Center for China Analysis (@Taylahbland) Learn More: Read “Unpacking China’s New Headline Climate Targets” by CCA Senior Fellow Li Shuo and Fellow Kate Logan. More from Asia Society :Register for an online panel discussion on how China and Russia are responding to Trump’s new foreign policy on February 23. Check out a new article by Neil Thomas about the missing China conversation at the World Economic Forum in Davos. Sign up for a conversation with historian Frank Dikötter about his new book, Red Dawn Over China: How Communism Conquered a Quarter of Humanity. Read about how censorship works in China in the era of WeChat in China Books Review‘s new column “What China’s Thinking.”Always Stay Informed:Sign up to receive this newsletter each week along with other expert information on China from the Asia Society Policy Institute’s Center for China Analysis. Subscribe to PLA Watch, a monthly newsletter delivering insights into the latest developments in Chinese military affairs. Dive into the latest news and insights from South Asia each month with the Asia Society Policy Institute’s newsletter, the South Asia Snapshot. Sign up for the China Books Review newsletter for reviews, essays, excerpts, profiles, and lists on all things China and bookish. Get the big picture from across Asia Society’s 16 centers by signing up for our global newsletter. |
CVD 