Alice Han

And our executive producer is Catherine Dillon.

Make sure to follow us wherever you get your podcasts so you don't miss an episode and talk to you again next week.

Right now, he's gotten rid of his most experienced military commanders and generals.

He doesn't have the operational experience or combat readiness now to go in and take Taiwan, let alone do a quarantine or a blockade.

So I think this probably delays a Taiwan showdown for the next couple of years.

Welcome to China Decode.

I'm Alice Han.

In today's episode of China Decode, we're discussing Xi's purge at the top and the shock to China's military command, TikTok after China, plus I'll chat with Song Houzi about China's economic reality.

That's all coming up.

But first, let's do a quick check in with how the Chinese markets are starting the week.

On Monday, the Shanghai A share index closed down 0.1%.

The Hang Seng 8 share index rose less than 0.1%, ending the day slightly in the green despite starting the day down nearly a full percentage point.

Precious metals mining company Zijin Mining Group closed up more than 4% as investors around the world rushed to buy gold and other safe haven assets.

And Hong Kong property companies, Hongkai Properties, Hang Long Properties and CK Asset Holdings all rose more than 3% after a Morgan Stanley analyst published a bullish outlook on the Hong Kong housing market.

But we'll get right into the first topic.

China just detonated the top of its military command.

Beijing has placed Zhang Youxia, Xi Jinping's longtime confidant and the PLA's second most powerful figure under investigation, alongside another top general.

This is unprecedented.

For context, Zhang Youxia was vice chair of the Central Military Commission, or CMC, which is both a state and party organ that oversees China's combined military.

So the near-total decapitation of the Central Military Commission leaves Xi effectively alone at the apex.