The purge's focus is on generals who "trampled on the chairman responsibility system," indicating a crackdown on challenges to Xi's direct, supreme command over the military, rather than a standard anti-graft campaign.
The unprecedented removal of top generals, including longtime confidants, suggests Xi feels his grip on the military is fragile. This is seen as a sign of weakness and concern over the loyalty and combat readiness of his top commanders.
The creation of a US-controlled joint venture for TikTok mirrors the structure that Western companies historically had to adopt to enter China. This role reversal shows how geopolitical power dynamics are reshaping global tech and business regulations.
The inability for Western governments and analysts to get reliable information or high-level contacts within China's military and political elite is the fundamental risk. This opacity makes predicting China's actions, especially regarding military decisions, nearly impossible.
While the joint venture with Oracle ensures US user data is stored locally, ByteDance retains ownership and control of TikTok's powerful recommendation algorithm. The Chinese parent company leases this critical "engine" to the US entity, maintaining operational influence.
China's massive trade surplus is driven less by its manufacturing strength and more by its failure to stimulate domestic consumption. Weak internal demand forces the economy to rely on exports, a stark contrast to its balanced trade position in 2018.
While the real estate crisis was the initial trigger, the root cause of weak household consumption is now the precarious labor market. With nearly a third of urban workers in insecure "gig" roles, fear about job security is a bigger constraint on spending.
By removing his most experienced commanders, Xi has reduced China's short-term operational readiness for a Taiwan conflict. However, the new generation of promoted generals could be more loyalist "wolf warriors," increasing long-term belligerence.
The deal's structure sets a precedent for how Western governments might regulate other Chinese companies that collect user data, such as e-commerce platforms (Temu, Shein) and automakers (BYD). It opens a "Pandora's box" for requiring data localization across industries.