Crown Prince Faction member Li Xiaopeng resigns, executives of Huaneng Group under investigation one after another

On October 30, 2024, the heir of the Chinese Communist Party (CCP), Li Peng’s son, Li Xiaopeng, stepped down from his position as the Secretary of the CCP Committee of the Ministry of Transport of the CCP. Following this, several high-ranking executives of the Chinese power giant China Huaneng Group, which was once under Li Xiaopeng’s leadership, were investigated, including Huaneng Energy Transport Industry Holdings’ former Chairman, Wu Yonggang, former Deputy Chief Engineer of Huaneng Group, Zhao He, and full-time director and supervisor at Huaneng Group, Ma Yugang.

On October 28, 2024, the CCP Central Commission for Discipline Inspection and the National Supervision Commission website reported that Wu Yonggang, former Secretary of the Party Committee and Chairman of Huaneng Energy Transport Industry Holdings, is under investigation.

Wu Yonggang, born in September 1965, previously served as the General Manager and Party Secretary of Nanjing Huaneng Nanfang Industrial Development Co., Ltd., Secretary of the Party Committee and Vice General Manager of Huaneng Energy Transport Industry Holdings, Executive Director, General Manager, Deputy Secretary of the Party Committee of Huaneng Energy Transport Industry Holdings, and Secretary of the Party Committee and Chairman of Huaneng Energy Transport Industry Holdings.

Established in 2002, Huaneng Energy Transport Industry Holdings (Huaneng Group Materials Supply Center) is a wholly-owned subsidiary of China Huaneng Group, with total assets of 23.1 billion yuan, managing 7 secondary enterprises and 1 listed company. Its business scope includes the intelligent supply chain in the energy industry, industrial park construction and operation, energy infrastructure project investment and management, logistics, import and export trade, and more.

On October 24, 2024, the Supreme People’s Procuratorate of the CCP reported on its website that Zhao He, former Deputy Chief Engineer of China Huaneng Group Co., Ltd., was suspected of accepting bribes. The investigation concluded by the Anshan Municipal Supervisory Committee in Liaoning Province and was forwarded to the procuratorial organ for review and prosecution. Recently, Anshan Municipal Procuratorate decided to arrest Zhao He on suspicion of bribery.

Zhao He, born in 1963, held positions such as Assistant Factory Director of Huaneng Dalian Power Plant, Deputy Factory Director of Huaneng Dalian Power Plant, General Manager of Huaneng Qinbei Power Generation Co., Ltd., Factory Director of Huaneng Qinbei Power Plant, General Manager of Huaneng Group’s Henan Branch, General Manager of Huaneng Group’s Liaoning Branch, Manager of the Production Department of Huaneng International Power Co., Ltd., Manager of the Ans…

The China Huaneng Group Co., Ltd. (referred to as China Huaneng) was established in 1985 with the approval of the State Council of the CCP and mainly operates in the power industry. It has a registered capital of 34.9 billion RMB, engaging in power development, investment, construction, operation, management, power (heat) production and sales, finance, coal, transportation, new energy, environmental protection industries, industrial investment operation, and management.

In 2016, the CCP’s official media Xinhua News Agency reported that Huaneng Group has a global presence with operations in dozens of countries across four continents. As a central state-owned enterprise serving the national strategy of the CCP, “Red Huaneng” actively participates in the Belt and Road Initiative.

Presently, Huaneng Group owns 57 secondary units, over 480 tertiary enterprises, 5 listed companies (including Huaneng International, Inner Mongolia Huadian, Xineng Taishan, Huaneng Hydropower, and Great Wall Securities), with 124,000 employees.

The formation and rise of Huaneng Group occurred during the tenure of former Premier of the State Council of the CCP, Li Peng, who oversaw the energy system. Li Xiaopeng, Li Peng’s eldest son, held high-level positions within Huaneng Group during his time in office.

Li Peng had a long career in the energy system, serving as Deputy Minister (1979-1981), Minister (1981-1983) of the CCP’s Ministry of Electric Power, Vice Premier of the State Council (1983-1988), Premier of the State Council (1988-1998), Chairman of the Standing Committee of the Ninth National People’s Congress (1998-2003), firmly controlling the CCP’s energy system.

Li Xiaopeng, born in June 1959, graduated in 1982 majoring in power plant and power systems from North China Electric Power University, joined the CCP in 1985, and held various positions including engineer at the Power System Research Institute of the Power Science Research Institute, Deputy Director of the Planning and Operation Department, and Director of the Power Technology Economic Research Institute.

From 1991 to 1999, Li Xiaopeng successively served as Assistant General Manager, Deputy General Manager, General Manager, Member of the Party Group, Deputy Secretary of the Party Group, Secretary of the Party Group, Director, Vice Chairman, and Chairman of Huaneng International Power Development Company.

Starting from 1999, Li Xiaopeng became a Director, General Manager, Secretary of the Party Group of Huaneng Group, Chairman and General Manager of Huaneng International Power Development Company, Chairman and Secretary of the Party Group of Huaneng International.

During Li Xiaopeng’s leadership, Huaneng Group expanded extensively, acquiring power companies in Hainan, Inner Mongolia, Guangdong, as well as abroad in countries like Australia, Singapore, achieving the leading position in China’s power generation industry. Overseas media dubbed Li Xiaopeng as the “Asian Power King” for this reason. Furthermore, Huaneng Group diversified through capital mergers to include coal mines, railroads, ports, forming an energy giant with electricity as the core, coal as the foundation, and integration of electricity-coal-road-port transportation.

In 2008, Li Xiaopeng was transferred from Huaneng Group, where he served for a long time, to become the Deputy Governor of Shanxi Province. He later held positions like Executive Deputy Governor, Acting Governor, Governor of Shanxi Province, Minister of Transport, Deputy Secretary of the Party Group in 2016. At the CCP’s 20th National Congress in October 2022, Li Xiaopeng failed to be elected to the 20th Central Committee. In the CCP’s two sessions in March 2023, Li Xiaopeng was re-elected as the Minister of Transport and also appointed as the Secretary of the Party Group of the Ministry of Transport.

On September 27, 2024, at 65 years old, Li Xiaopeng was relieved of his duties as Secretary of the Party Group of the Ministry of Transport of the CCP, with former Deputy Secretary of Beijing Municipal Party Committee, Liu Wei, taking over. Following CCP convention, Li Xiaopeng is expected to step down as Minister of Transport, with Liu Wei set to succeed him.

On October 11, 2024, Li Xiaopeng was appointed as the Deputy Director of the Economic Committee of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC).

Since Xi Jinping eliminated the term limits in 2018 and consolidated power, he has favored former officials from Fujian and Zhejiang, while taking precautions against the princelings and second-generation reds who share his background. Many princelings have retired early or been marginalized, such as the son of Liu Shaoqi, Liu Yuan. Liu Yazhou, a princeling and retired general, went “missing” in 2021 and was later confirmed to be convicted of corruption and sentenced to life in prison, raising suspicions of his involvement in opposition to Xi.

As Li Xiaopeng steps down from his official role in the CCP’s Ministry of Transport and transitions to a less active role at the CPPCC, his power base at Huaneng Group undergoing a purge reflects the fierce reshuffle of high-level political power and competition for black interests within the CCP. The future political fate of the Li Peng family awaits further observation.