Singapore’s Straits Times reported recently that Shanghai’s Chinese Communist Party Secretary Chen Liangyu criticized Chinese Premier Wen Jiabao at a recent Politburo conference, saying that the premier’s macroeconomic regulations have already harmed the economy of the Yangtze River delta, and will hinder China’s economy in future years. He also pointed out that if Wen and the State Council do not make corrections, they will have to take “political responsibility.”

Premier Wen, who supports regulations that lower economic activity, reportedly faces resistance from within the Chinese Communist Party. According to sources, at the meeting, Chen said Wen’s policies have damaged Jiangsu and Zhejiang provinces, as well as other eastern provinces and cities, and hindered the nation’s economic development for several years to come.

Chen also gave data to Politburo members, showing specifically how the regulations have affected economic development in Shanghai. Chen requested that the regulations be reconsidered, and also warned Wen and his advisors that if they continue to carry on the regulations, they will have to take “political responsibility” for any economic damage.

CCP faces internal conflicts

The Straits Times said that since Chinese President Hu Jintao and Wen Jiabao took charge of the CCP and government affairs in 2002 and 2003, the Politburo has experienced its greatest number of direct internal conflicts. At the recent meeting, Wen and Chen carried on a long argument that ended without resolution. Finally, Wen said that if the economy suddenly crashed he would take responsibility. At this point, Hu, who had presided over the meeting, broke into the argument to point out that the macroeconomic regulations were a collective decision made by the central government and were to be carried out by all levels of the government.

The Strait Times reported that the Chinese government is split into two factions and leader of China’s military and former president Jiang Zemin’s dislike of the Hu and Wen group is public knowledge. The report quoted a news source as saying that in recent weeks, Jiang has been hinting that a second five-year term for the two leaders is not for certain.

Analysts believe that the internal conflicts among top-level Chinese officials have become extremely intense. Generally speaking, Chinese officials rarely publicize their internal conflicts, even if they belong to groups with different political goals, they still maintain a harmonious surface.

In fact, conflicts inside the CCP have become more and more evident recently. According to a recent report from Radio Free Asia, high-ranking Chinese official Zeng Qinghong originally planned to supervise a July 1st parade in Guangdong province after finishing a visit to four countries in Africa. However, he suddenly changed plans and went back to Beijing.

In addition, the 21st Century Economics Report published articles critical of Premier Wen on July 1, and published an article to correct itself and undo some of its criticism on its July 5th front page. Chinese political analysts do not see these two events as directly related, but as signs of internal power struggle.