On July 17, Peng Liyuan appeared at the 2025 "Guling Friendship" U.S.-China Youth Exchange event hosted by the Chinese People’s Association for Friendship with Foreign Countries. (Video screenshot)
[People News]Zhongnanhai has recently been marked by rapid and dramatic shifts. Under the CCP’s opaque political system, new reports have once again surfaced regarding the unclear fate of Zhang Youxia. Sources from within the Party system also claim that amid a collapse of trust within the military, Xi Jinping can now rely only on his wife, Peng Liyuan. In response, princeling Liu Yuan has reportedly made a striking prediction. At this sensitive moment, the cause of former Premier Li Keqiang’s death has once again become a focal point in political maneuvering. The aftershocks of the political “earthquake” triggered by investigations into Zhang Youxia and Liu Zhenli continue to spread through Zhongnanhai.
Zhang Youxia Detained in Beijing; Xi Can Only Rely on Peng Liyuan
First, attention turns to Zhang Youxia, the central figure in the military’s current turmoil. Overseas rumors about the vice chairman of the Central Military Commission have been rampant. At one point, reports claimed he went on a hunger strike, was force-fed, and was near death; at the same time, there were conflicting claims that he was spending the New Year in southern China.
On February 22, independent commentator Cai Shenkun disclosed on social media that, according to his sources in Beijing, most of those rumors were inaccurate. Cai stated that Zhang is currently in Beijing, detained in the Beijing Garrison Command, under “dual supervision” by the Central Guard Bureau. His physical condition is reportedly stable, and his family has not been affected for now.
In addition, The Wall Street Journal recently revealed details of Zhang’s arrest, reporting that he was intercepted while en route to a meeting at the Central Party School, and that his son was also detained.
At present, the CCP has issued no official statement regarding Zhang Youxia or Liu Zhenli, and none of the circulating accounts can be verified. However, Zhang’s life or death concerns not only him personally but also touches the bottom line of the CCP’s red aristocratic families and conservative military factions. If something were to happen to him, the so-called “tacit line” that maintains internal stability within the CCP could be broken, potentially forcing previously neutral factions to take sides and even triggering open protest or conflict within the military.
Against this backdrop of collapsed mutual trust, whom can Xi Jinping still trust? The answer appears to point to his wife—Peng Liyuan.
On February 23, Australian-based legal scholar Yuan Hongbing told Vision Times that after becoming deeply mired in a trust crisis, Peng Liyuan has become the only person Xi can rely on. This is not a recent development; Peng holds a real-power position as a full-time member of the Central Military Commission’s cadre selection committee. Xi has long operated what some describe as a “family-run operation” within the military.
Yuan stated that Peng is not merely a ceremonial first lady. In fact, promotions of senior military officers have reportedly required her input to a significant degree, a practice that has provoked strong dissatisfaction among generals.
It is said that Zhang Youxia once directly told Xi that senior cadre promotions should not be run as a “family business.” Although there have been rumors that Peng might become a CMC vice chair, Yuan believes that given the historical lesson of Mao Zedong’s wife Jiang Qing and the damage to the Party’s image, Xi is unlikely to risk appointing Peng to such a visible role. However, in terms of real personnel control, she is reportedly Xi’s only trusted confidant.
Liu Yuan Speaks Out; Li Keqiang’s Death Revisited
Yuan Hongbing also revealed that, according to sources within the Party described as “conscientious insiders,” Liu Yuan—a prominent member of the “Red Second Generation”—has made a striking prediction. Liu reportedly said that even if Xi manages to rebuild his so-called “Xi family army” within the military, a major case of “absolute disloyalty” will soon erupt again. The resentment against Xi within the military has not dissipated, he claims, but is rapidly accumulating.
Xi is described as being in a state of isolation, surrounded by figures such as Cai Qi, Li Qiang, and Zhao Leji—labeled as flatterers and described harshly as “the most foolish and the worst group among the Chinese.” Liu predicts that under such high-pressure and mistrustful conditions, Xi may ultimately lose control amid mounting crises.
At this highly sensitive moment, the cause of former Premier Li Keqiang’s death has once again been raised. Li died in Shanghai in October 2023. The official explanation was “sudden cardiac arrest.” However, for a top-level national leader with access to elite medical teams, that explanation has long failed to convince many observers.
Recently, Shanghai entrepreneur Hu Liren claimed that a doctor involved in Li’s emergency treatment has fled China and will disclose details of the rescue efforts in the West. This could prompt renewed internal Party scrutiny into the true cause of Li’s death.
Revisiting Li Keqiang’s cause of death at this time is said to be no coincidence but rather a “political reserve card” held by Party elders in high-level power struggles. Reports suggest that a group of retired Party elders is re-examining Li’s death and demanding clarity—moves that appear to align with the turbulence triggered by the Zhang Youxia case.
If an investigation were launched, Xi loyalists such as Wang Xiaohong, who oversees security and special services, and Chen Yuan, recently appointed commander of the Beijing Garrison and formerly commander of the Shanghai Armed Police, could become entangled. This could lead to a reshuffling of Xi’s personnel arrangements. Such a move would represent a low-cost counterattack, potentially creating immense pressure among Party elders and even evolving into a form of “forced abdication.” If a retired leader like Li Keqiang could die under suspicious circumstances, none of them would feel secure.
Yuan Hongbing concludes that the current CCP regime has entered a “logic of end-stage frenzy.” Xi’s suspicions in handling military personnel matters have driven him to rely on Peng Liyuan, which in turn has intensified resistance within the military. Meanwhile, the renewed focus on Li Keqiang’s death could deal a far more severe blow to Xi’s rule and personal standing.
(First published by People News)
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