Chinese Communist Party Exploring Alternatives To Xi Amid Economic, Military Strains: Sources | Exclusive

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Last Updated:July 07, 2025, 15:12 IST

Intelligence sources reveal that the CCP wishes to move China away from ideological isolation and towards institutional reform.

The Chinese Communist Party (CCP) is testing the waters with new faces as they consider Xi Jinping a liability to China’s long-term stability, top intelligence sources have told CNN-News18. Sources say the old guard of the CCP is disillusioned with Xi’s ideological rigidity and international overreach. Intelligence sources reveal that the CCP wishes to move China away from ideological isolation and towards institutional reform. Although Xi Jinping remains in formal command, he is under growing internal pressure due to several failures.

Sources indicate that Xi’s centralisation and ideological campaigns have disappointed key factions within the CCP. Continuous spying on everyone is straining China’s technological base and weakening institutional morale, according to top intelligence findings. The removal of his trusted officials, such as Li Shangfu and Qin Gang, has deepened internal insecurity. There is a consensus among CCP and Party seniors, as noted by intelligence sources, that Xi’s ideological model is no longer effective.

What Are The Options?

General Zhang Youxia, First Vice Chairman of the Central Military Commission, has quietly emerged as the real power behind the People’s Liberation Army (PLA), as per intelligence sources. Though once seen as a Xi Jinping loyalist due to family ties, Zhang has now shifted towards an autonomous military posture without Xi, backed by senior CCP figures from the Hu Jintao–Wen Jiabao era. Intelligence sources suggest that Zhang’s growing independence indicates a rebalancing of power within the CCP. A major concern for the CCP, as noted by intelligence, is making the army a stabilising institution.

On the economic front, intelligence sources mention Wang Yang, a sidelined reformist and former Vice Premier. Groomed by the same Hu-era seniors, Wang is seen as a technocratic alternative to Xi. Known for his economic expertise and clean governance record in Guangdong, Wang has global acceptability. Though officially out of the power loop, intelligence sources highlight that he is increasingly viewed as a post-Xi figure. The main idea, according to intelligence sources, is to have someone who could repair China’s collapsing private sector confidence, revive foreign investment, and restore policy predictability.

Top intelligence sources state that the CCP has two important facets: military and economy. They aim to align General Zhang Youxia’s military professionalism with the technocratic collaboration around Wang Yang. Should the army lean towards Zhang, the PLA is likely to become more doctrine-driven and professionally assertive, playing in theatres like Ladakh, Taiwan, and the South China Sea. Military confrontations could remain a threat, used to distract from domestic discontent, as intelligence sources warn.

In case Wang Yang-oriented leadership takes charge, sources suggest he would tilt China back towards economic diplomacy, opening selective windows for economic and border dialogues. Intelligence sources emphasise that the CCP wants a balance between military assertiveness and economic reform to navigate the challenges facing China.