Insider Report: Xi Fears CCP Becoming the Soviet Union, Foreign Ministry Backs Down

Trump's soft and hard tactics leave the CCP disoriented. (Image by Qing Yu / People News)

People News – According to a video report by Qin Peng Observations, insider sources reveal that Xi Jinping is terrified that Trump will crush the CCP the way the U.S. dismantled the Soviet Union, leading to the collapse of both the party and the state. Meanwhile, the Chinese Foreign Ministry has backed down, making a high-profile declaration that “neither a Cold War nor a hot war can or will be won.”

The Report:

Over the past few days, a series of moves by the Chinese Communist Party (CCP) have left observers baffled. The Politburo meeting and the ongoing Two Sessions once again pushed for greater economic openness. The Ministry of Commerce responded cautiously to the U.S. second round of tariffs, only selectively addressing $20 billion worth of products. However, the Chinese Foreign Ministry, in contrast, took on an aggressive "wolf warrior" stance, proclaiming that “the Chinese people have never believed in evil spirits, never feared ghosts, and never bowed to hegemony and bullying.”

Most notably, on March 4, Foreign Ministry spokesperson Lin Jian directly challenged the U.S., asserting that China would respond to any type of conflict. He declared, “If the U.S. has ulterior motives and insists on launching a tariff war, trade war, or any other kind of war, China will fight to the end.”

The CCP Foreign Ministry even translated this into English, with the phrase “Fight to the End” giving off an unmistakably combative tone. This shocked international media, sparking discussions on whether the CCP was preparing to return to a Cold War stance.

However, just two days later, on March 6, Lin Jian made a dramatic U-turn, completely reversing his position. He publicly stated: “China’s stance is clear and consistent—whether it’s a tariff war, a trade war, a Cold War, or a hot war, such wars should not and cannot be fought or won.”

What Happened to the CCP?

On the surface, this shift appeared to be a reaction to remarks made a few hours earlier by U.S. Secretary of Defense Haig Sace during an interview on Fox News. When asked about the provocative statement from the Chinese embassy, Sace responded bluntly, “We are ready for combat.”

However, the real reason is far more complex. The CCP Foreign Ministry’s immediate retreat in the face of strong opposition is highly unusual. Moreover, CCTV News prominently featured the Foreign Ministry’s statement that “neither a Cold War nor a hot war can or will be won” as a headline, making it clear that the CCP was backing down and raising a “No War” sign to the world. This is especially significant for two reasons: CCTV is the CCP’s top propaganda mouthpiece, representing the party’s official stance and image. The statement came during the Two Sessions, a time when the CCP is supposed to be boasting about its achievements and reassuring the Chinese people that they are “winning again.” For the CCP to show weakness at such a moment is highly unusual.

The latest revelations from The Wall Street Journal shed light on what’s really happening: Xi Jinping himself ordered this retreat because he is terrified of a Cold War with the U.S.—and even more afraid that the CCP will meet the same fate as the Soviet Union.

The article states that the CCP is secretly worried that Trump will win the trade war, so it is seeking a deal with the U.S. It reveals that in November last year, shortly after Trump secured his lead in the U.S. presidential race, Xi Jinping urgently instructed his aides to conduct an in-depth analysis of the Cold War competition between the U.S. and the Soviet Union. Sources familiar with high-level CCP consultations say that Xi is concerned that, as Trump prepares for a showdown with Beijing, China could end up isolated just like Moscow did during the Cold War.

And Xi’s fears are not unfounded. While Trump may appear to be alienating traditional allies—picking trade fights with Mexico and Canada, shocking Europe with his stance on Ukraine, and even vowing to take control of Greenland and the Panama Canal—the reality is that the CCP is not gaining any advantage from this situation.

Xi is most concerned about China’s domestic economic crisis, which is forcing him into a defensive position. Meanwhile, Trump is reshaping the global trade system to prevent countries, especially China, from benefiting at the U.S.’s expense. As Trump has repeatedly stated throughout his campaign, his primary foreign policy goal is to confront the CCP. His advisors emphasize that all of his strategic decisions should be viewed through this lens. Trump’s push to end conflicts in the Middle East and Ukraine is designed to allow the U.S. to focus more resources on China. His recent overtures to Russian President Vladimir Putin are partly aimed at driving a wedge between Russia and China.

Trump’s determination to take back control of the Panama Canal is also rooted in security concerns. Over the past 30 years, the CCP has heavily invested in Panama’s infrastructure, posing a direct threat to U.S. national security. And now, Trump is making progress on this front—on Tuesday, the U.S. firm BlackRock acquired a majority stake in two Panamanian ports previously owned by Hong Kong tycoon Li Ka-shing.

Everything aligns with what Trump’s officials have been saying: “Everything he is doing is aimed at allowing us to dedicate more resources to confronting China.”

How could this not instill fear in Xi Jinping? He once aimed to reshape the global order by allying with Russia to challenge the West, but now he finds himself at a disadvantage. Even more troubling for him is that China is facing trade restrictions and sanctions, leading to a Soviet-style isolation, with diminished sales channels for goods and restricted access to critical technologies.

As a result, Xi Jinping has decided to pull back. Experts advising Beijing have stated, 'China now faces the risk of becoming a competitive target similar to the former Soviet Union.' 'Xi Jinping believes this situation must be avoided.'

So, what are Xi Jinping's plans? Insiders have disclosed some of his contradictory actions; he has dispatched multiple representatives to Washington to explore potential agreements with the new Trump administration; prepared a range of measures, including export controls on critical minerals; and attempted to court America's traditional allies, all while trying to prevent excessive retaliation from Trump in the tariff war. He aims to launch a campaign to avoid a tariff conflict. However, he did not anticipate that Trump would bypass negotiations entirely and instead strike hard.

Michael Pillsbury, who advises the U.S. government, said that Xi Jinping has been stunned. "They are somewhat desperate. Their economy is in trouble. Now that Trump has imposed additional tariffs, they know this campaign has already failed."

Meanwhile, Trump is taking a measured approach, first securing agreements with other countries to bolster his negotiating position against China, while also keeping Xi Jinping in suspense by hinting at the possibility of a new agreement with China, all the while continuing to endearingly refer to Xi Jinping as 'a good friend.'

Individuals close to the U.S. government have suggested that the U.S. may ultimately compel China to agree to 'structural changes' in its economic practices. This implies a challenge to the governance system of the Chinese Communist Party (CCP) and a confrontation with the bottom line that Xi Jinping is unlikely to accept.

Graham Allison, the former dean of Harvard University's Kennedy School, noted that Xi Jinping has been hoping that Trump would characterize U.S.-China relations as both competitive and cooperative.

Meanwhile, sources indicate that Xi Jinping is not interested in Trump simply proposing a solution to the fentanyl crisis. Instead, he seeks to engage in dialogue with Trump to achieve a more comprehensive agreement and clarify the overall relationship. On January 20, Han Zheng, the Vice Chairman of the CCP who attended Trump's inauguration, conveyed this sentiment to officials in the Trump administration.

Consequently, while Trump made positive remarks, he also imposed the first round of tariffs on China. This week, he added a further 10% tariff on China, which caught Zhongnanhai off guard.

Informed sources remarked, 'The Chinese side has consistently insisted that the U.S. engage in negotiations under certain conditions,' and 'They have been urging the Trump team to present specific demands, hoping these could lead to broader discussions.'

This article is quite intriguing. While reading it, I felt as if I was immersed in the tale of a lovesick woman who, despite not making any genuine changes in her life, continues to hope for improvement every day. The Chinese Communist Party has persistently misjudged the United States. The root cause, as I thoroughly analyzed in my program on Wednesday, is that Trump possesses clear values regarding many significant issues both at home and abroad, with the eradication of various forms of socialism being a core part of his ideology. In contrast, the Chinese Communist Party has consistently viewed him merely as a profit-driven businessman. How could they not repeatedly compound their errors?