The recent anti-corruption storm of China's power giant Huaneng Group has attracted widespread attention. Before and after Li Xiaopeng stepped down as the party secretary of the Ministry of Transport of the Communist Party of China, many senior executives of Huaneng Group, where he had served, were successively dismissed, including Wu Yonggang, Zhao He, Ma Yugang, etc. This series of events not only revealed the corruption problem within Huaneng Group, but also made the outside world think about the power struggle within China's political arena in a new way, especially the complicated relationship with the princeling Li Peng family.

Huaneng Group executives have been investigated one after another

The anti-corruption storm of Huaneng Group began in early 2024, and many senior managers were investigated for suspected corruption. Among them, the most eye-catching was Wu Yonggang, the former party secretary and chairman of Huaneng Energy Transportation Industry Holding Co., Ltd. On October 28, 2024, the website of the Central Commission for Discipline Inspection announced that Wu Yonggang was under investigation for suspected serious violations of discipline and law. Wu Yonggang had served in many key positions in Huaneng Group and controlled huge assets and a wide range of business networks. As a wholly-owned subsidiary of Huaneng Group, Huaneng Energy Transportation Industry Holding Co., Ltd. is mainly responsible for supply chain management and infrastructure investment in the energy industry, with business covering multiple fields.

In addition to Wu Yonggang, other senior executives of Huaneng Group have also been arrested one after another. On October 24, 2024, Zhao He, former deputy chief engineer of Huaneng Group, was formally arrested on suspicion of bribery. Zhao He has worked in Huaneng Group for many years and has managed many large-scale power projects. In particular, during his tenure at Huaneng Dalian Power Plant and Huaneng Qinbei Power Generation Company, he has accumulated extensive connections and resources. His investigation further highlights the depth of corruption among the top management of Huaneng Group.

In addition, on June 26, 2024, Ma Yugang, the former full-time director and supervisor of Huaneng Group, was also arrested on suspicion of bribery. Ma Yugang held important positions in many subsidiaries of Huaneng Group and used his position to seek personal gain for others. The amount involved in the case was huge. Also at the beginning of this year, Huang Haiyan, the former deputy general manager of Huaneng Group Jilin Branch, was also transferred to the procuratorate for review and prosecution for bribery. Huang Haiyan served in many branches of Huaneng Group and accumulated rich resources. His investigation further deepened the outside world's attention to the internal problems of Huaneng Group.

Huaneng Group's Status and the Origin of the Li Peng Family

Huaneng Group is a giant in China's power industry. Founded in 1985, it is one of the key state-owned enterprises approved by the State Council, with huge assets and a complex business system. Huaneng Group's business scope includes not only power production and sales, but also finance, transportation, coal, new energy and other fields. According to the official website of Huaneng Group, the group's registered capital is as high as 34.9 billion yuan, with 57 second-level units and more than 480 third-level enterprises, covering many countries and regions around the world.

The rise of Huaneng Group is closely related to the power background of former Chinese Premier Li Peng. Li Peng has long been in charge of China's power energy system, and his son Li Xiaopeng has also worked in Huaneng Group for many years, serving as the group's general manager, party group secretary, chairman and other positions. During his time at the helm of Huaneng Group, Li Xiaopeng vigorously promoted the expansion of the group, acquired many power companies at home and abroad, and made Huaneng Group occupy a leading position in the power industry. Li Xiaopeng is therefore called the "Asian Power King", a title that not only reflects his achievements in the power industry, but also highlights the influence of the Li Peng family in China's power system.

Li Xiaopeng's career and the dilemma of the princelings

Li Xiaopeng was transferred from Huaneng Group in 2008 and entered local politics. He served as vice governor and governor of Shanxi Province, and later as Minister of Transport. In 2023, Li Xiaopeng resigned from the post of secretary of the Party Leadership Group of the Ministry of Transport and became deputy director of the Economic Committee of the National Committee of the Chinese People's Political Consultative Conference. Although this position seems important, it is actually a relatively marginal position, showing that Li Xiaopeng's political status has declined significantly.

Li Xiaopeng's resignation and the corruption cases in his old nest Huaneng Group have triggered speculation about the situation of the princelings in the CCP's power system. In recent years, the Xi Jinping government has strengthened its control over the princelings and the second generation of reds. Many of the second generation of reds who once held an important position in China's political arena have gradually been marginalized and even lost power. As one of the representative families, the future political fate of the Li Peng family seems confusing.

Since the constitutional amendment in 2018, Xi Jinping has firmly controlled the regime, and at the same time he has remained highly vigilant against the princelings. Many politicians who belong to the second generation of the red family like Xi Jinping, such as Liu Shaoqi's son Liu Yuan, have been retired early or squeezed out of the core of power. Even some second generation red figures such as Liu Yazhou have been severely punished for corruption, and Liu Yazhou was sentenced to life imprisonment.

Huaneng Group's purge and the power game in China's political arena

Huaneng Group's anti-corruption storm seems to be more than just targeting the corruption of individual officials. In fact, this series of investigations and purges reflects the reshuffle of China's top political power and the power struggle among interest groups. Large state-owned enterprises such as Huaneng Group control huge resources and interest networks, and their internal power struggles are often closely linked to the political game of the top leaders of the Communist Party of China.

After Li Xiaopeng resigned from the actual post of the Ministry of Transport, corruption cases broke out in Huaneng Group one after another, which vaguely revealed the power struggle within the top leadership of the Communist Party of China. The long-term influence of the Li Peng family in China's power system seems to be gradually fading with Li Xiaopeng's departure and the investigation of Huaneng Group executives.

The corruption cases at Huaneng Group in recent years have revealed the complex power network within China's central enterprises and exposed the dilemma of the princelings in China's high-level politics in the new era. Li Xiaopeng's resignation marks the end of an era, and the continued purge of Huaneng Group may be a prelude to the redivision of China's political landscape. The future political dynamics will be full of uncertainty, both for the Li Peng family and the entire CCP power structure.