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How Sweet It Is: Tootsie Rolls Still Going Strong After 130 Years

October 30, 2026 MMN Editor Filed Under: SUCCESS, The Street

Korea, 1950, and the Marines are in a tough spot.

Roughly 30,000 U.N. troops, including about 15,000 Marines, soldiers from the Army’s 7th Infantry Division, British commandos and South Korean police, are surrounded by more than 120,000 Chinese soldiers at the Chosin Reservoir as temperatures nosedive to a bone-rattling 30 to 40 degrees below zero.

Running out of ammunition, the embattled Devil Dogs radioed an urgent request for 60mm mortar rounds using the designated code name “Tootsie Rolls.”

However, according to one version of events, instead of receiving the much-needed ammunition, the Marines mistakenly received the famous candy by airdrop.

A different account holds that it was distributed from supplies originally intended for a military post exchange.

Either way, it makes for a hell of a story, don’t you think?

Tootsie Rolls had been a standard part of American field rations since World War II because they held up under all kinds of conditions. And they made a big difference at the Chosin Reservoir.

Frozen solid, the candy could break a tooth, but the Marines found they could thaw it in their mouths for an instant energy boost.

“Tootsie Rolls were our main diet while fighting our way out of the Reservoir. You can bet there were literally thousands of Tootsie Roll wrappers scattered over North Korea,” said 1st Marine Division veteran Edward M. Szymciak, according to the Museum of the American G.I.

In the Beginning…

The Marines also reportedly used the candy to patch bullet holes and repair leaking radiators in their vehicles.

These are just a few of the tales associated with the iconic candy, whose maker, Tootsie Roll Industries (TR), marked its 130th anniversary this year.

Back in 1896, when William McKinley was president, Leo Hirschfeld, an Austrian immigrant, began working at a small candy shop in New York City owned by the Stern & Staalberg.

Hirschfeld wanted a chocolate-tasting candy that would not melt in the heat, and he dubbed it “Tootsie,” after his daughter Clara’s nickname.

The Tootsie Pop, a lollipop with a Tootsie Roll center, debuted in 1931. The company also owns such beloved brands as Junior Mints, Charms Blow Pops, Sugar Daddy and Charleston Chew.

Tootsie Roll Industries

So how did Tootsie Rolls manage to survive for so many years? Jason Liebig, a candy and snack brand historian, has a few ideas.

“First, it is delightfully simple and perfect in its way,” he said. “Chocolatey, chewy, and remarkably stable — it doesn’t melt — so it’s something that travels well. So, the product itself is fundamentally sound. That simplicity also makes it something that can be produced simply and affordably. But that alone can’t be the reason it is still with us.”

Liebig, also known as the “Indiana Jones of Brands,” said the Gordon family, which has led Tootsie Roll Industries for decades, has played a key role in the brand’s longevity.

The Gordons’ history with Tootsie Roll began during the Great Depression, when the struggling corporation was called the Sweets Company of America.

William Rubin, the father of current CEO Ellen Gordon, steadily acquired shares and gained a controlling interest in the company.

Melvin Gordon, Ellen’s husband, was chairman and CEO of Tootsie Roll Industries from 1962 until his death in January 2015 at the age of 95. At the time of his death, he was the oldest CEO of a company traded on a major U.S. stock exchange.

“Tootsie Rolls are not an exciting hit product in today’s market, and another company or executive group might have wanted to replace it with something newer and more exciting — or more profitable — but while Tootsie Rolls and Tootsie Pops are not the ‘next big thing,’ they are about as stable an offering as one can imagine,” Liebig said.

Related: Halloween Candy Sales Check: Here’s what Amazon is selling

Ellen Gordon’s connection to the company dates to the 1920s, when her mother first purchased shares. Now 94, she remains at the helm of the family-led business.

“I think we can look at the Gordon family as key in the long-term commitment to the Tootsie Roll product,” Liebig said. “And generation after generation they’ve always been there and they are a tradition that consumers have passed down. Beyond that, Tootsie Roll has pretty fantastic marketing.”

Liebig also noted the Mr. Owl character, which debuted in 1969 to promote Tootsie Pops and is widely considered one of the most recognizable and longest-running animated advertising icons in television history.

“In that campaign, they created a timeless marketing-mascot bit,” he said. “There’s magic in that marketing.”

A Trick or Treat Tradition

Mr. Owl was rebooted last year, so now a new generation can ponder the question, “How many licks does it take to get to the Tootsie Roll center of a Tootsie Pop?”

And this year, he got a chameleon sidekick in ads promoting Tootsie Roll’s range of flavors.

Shutterstock

Tootsie Roll Industries reported third-quarter earnings of 31 cents per share on Oct. 21, down 35% from a year earlier, while net sales slipped 1% to $227.2 million.

In a statement, Gordon cited such factors as the timing of seasonal Halloween sales, higher costs for cocoa, chocolate and packaging materials, as well as increased energy costs.

Tootsie Rolls are popular among Baby Boomers and Gen X as a nostalgic staple, but their appeal fades among younger consumers.

“I think it’s fair to say that, given that Tootsie Roll is a classic and traditional treat, in some ways it gets left behind as consumers seek out new experiences,” Liebig said. “Gen Z and Millennials are seeking even more complex and exciting experiences from candy.”

He cited the success of Nerds Gummy Clusters, which brought the concept of multi-textural candy — combining different physical textures in a single piece of sweetness — to the fore and upended the gummy candy category.

Liebig noted that while younger people are interested in low-sugar or zero-sugar products, “it just means that if a Gen Z is going to eat sugar, it has to deliver a truly unique experience.”

Tootsie Roll Industries recently introduced Tootsie Hoots, a small ball of Tootsie Roll surrounded by a candy shell, in a bid to bring a more varied texture to the classic candy. Liebig said the product fits a broader trend among younger consumers seeking new candy experiences.

“I think Tootsie products are perennial favorites and even in the face of data that might show younger consumers turning away from them, I think most adults will fill out any Trick or Treat bowl with at least a few Tootsie products,” he added. “It’s a good thing.”

‘The View’ co-hosts agree Democrats should not impeach Trump if party wins back control of Congress

October 30, 2026 MMN Editor Filed Under: THE NEWS

“The View” co-hosts agreed with former Vice President Kamala Harris Friday that impeachment would not be a good use of the Democratic Party’s time and resources if the party wins back control of Congress in the midterm elections.”I think that going on in the direction of impeachment is not a good idea,” Harris warned Tuesday on “The Parnas Perspective” podcast. “OK, just to be honest with you. Because we have limited resources, and I think the energy and the resources need to be put into accountability, need to be put into investigations. And that’s where the time should be spent. Remember, I was in the Senate for the last go-round and the votes aren’t there, right? So, that’s how I feel.”After playing a clip of Harris’ comments, “The View” co-hosts agreed with her assessment. KAMALA HARRIS BREAKS WITH LEFT FLANK, WARNS DEMS THAT IMPEACHING TRUMP IS ‘NOT A GOOD IDEA'”In terms of Trump, no, I don’t think that’s what should be on the agenda,” co-host Sunny Hostin said. “Hakeem Jeffries — who I believe will be the next speaker of the House, after November — he has a plan for 100 days which includes tax credits, taking care of the tax credits, limiting ICE and also stock trades. “And then he’s got a plan for the first 100 hours, which would include, you know, just undoing a lot of unpopular Trump policies. So, I think there is a plan in place that Democrats have, and it may not include impeaching Trump.””I think that Democrats have to be realistic of what’s achievable,” co-host Ana Navarro said. “We are four days away from the election. So, before we start talking about what Democrats are going to do once they win, they’ve got to make sure they win. “People have to focus not on all of the conversation about impeachment and what is going to happen but rather on getting out the vote and getting people to the polls so that the American people decide who they want in power in the House and in the Senate.”There’s a limit to what Democrats are going to be able to do even if they win the House, even if they win the House and the Senate, because Donald Trump is still president,” she continued. “Legislation in this country needs to be signed by the president. If not, it needs to have a veto-proof majority. And I think that’s going to be very difficult to achieve. I’m completely against impeachment.”There’s 100 other ways to hold Donald Trump and his administration accountable,” Navarro added. “Impeachment is an exercise that’s moot if you don’t have the 67 votes in the Senate required to indict.”Joy Behar pointed to former President Richard Nixon’s resignation from office after Republican lawmakers warned him that he lacked sufficient Senate support to avoid conviction if impeached and said of Trump, “If we don’t have the votes to convict, there’s no point in impeaching.”DEM MAKING SENATE COMEBACK BID SAYS HE WOULDN’T SUPPORT A TRUMP IMPEACHMENT PUSHSara Haines also agreed, arguing that many of Trump’s supporters are now angry with him for breaking campaign promises and that Democrats could capitalize on their dissatisfaction by delivering on their own promises.”It’s important to recognize the moment,” she said. “Donald Trump was elected and promised things he never touched. He’s been remodeling, redecorating, working to revenge, all the things. The voters were left high and dry, which is why we’re seeing some red states flip full to blue,” she said. “That’s why we are watching this campaigning.”They need to see someone get in there, hold them accountable, do the investigations, fine,” Haines continued. “But really show the American people that what they promised, to fix all these things, that immediately there’s action taken. Even if it can’t get past the president. Spin the wheels. Show the people that you are putting up policy, that you are taking things to vote, that you are actually acting for the people that put you there.””Impeachment is not where the focus should be,” Alyssa Farah Griffin said. “It costs actually a lot of money to do a trial, do the investigation.”What I think is important is there are day one things that would be beneficial for all Americans and a lot of Republicans would be on board with that a Democratic Congress could do,” she continued. “Repealing Trump’s tariffs, that is the power of the purse controlled by Congress and trying to wind down or pause the war in Iran. Those are things you should get Republican votes to do. That will bring down people’s fuel prices. Those are where the focus should be.”Earlier this month, veteran Democratic strategist James Carville also warned Democrats against impeaching Trump if the party wins control of Congress in the midterms. CLICK HERE FOR MORE COVERAGE OF MEDIA AND CULTUREDemocratic strategist and co-host of “The Huddle” podcast Dan Turrentine told Fox News Digital, “Neither the Senate arithmetic nor the American people are there. Folks are angry with the president about the economy, tariffs, healthcare, the war with Iran, corruption. They feel he is focused on everything but them.”Our job is to fight for the real lives of real people, solving their problems, while providing appropriate oversight of the executive branch and trusting the electorate provides accountability,” he added. “The quickest path back to the minority or continuing to be on the outside, looking into the White House, is to focus on revenge and score settling.”

Brazil’s Lula Regime Orders Sweeping Social Media Crackdown Against ‘Electoral Harassment’ After His Disputed Election Victory

October 30, 2026 MMN Editor Filed Under: THE NEWS

Communist Brazilian President Lula da Silva. Photo by Ricardo Stuckert / PR
Brazilian President Luiz Inácio Lula da Silva’s socialist regime has launched a fresh crackdown on social media and freedom of speech.
On Thursday, his government announced new measures to force social media companies to remove content deemed to constitute “electoral harassment.”
The crackdown comes just days after Lula narrowly defeated conservative challenger Flávio Bolsonaro in a disputed presidential runoff.
Bolsonaro has since been forced to seek refuge in the U.S. to avoid being imprisoned by the socialist authorities.
BREAKING: Flavio Bolsonaro and Family Have Arrived in Miami After Fleeing Brazil – State Department Grants Visa

The government claims to have complaints from workers who were threatened with dismissal or pressured over their political preferences.
“These measures aim to protect workers’ freedom of political choice and hold employers accountable for discriminatory practices,” the government declared.
Under the new initiative, authorities can seek the removal of websites, publications and social media posts it claims are interfering with the political process.
The campaign involves the Justice Ministry, Labor Ministry, federal prosecutors and Brazil’s Superior Labor Court.
American technology companies are already facing enforcement action.
According to Brazilian newspaper O Globo, the Superior Labor Court ordered Meta, which owns Facebook, Instagram and Threads, to remove posts encouraging employers to fire workers over their votes.
The company was reportedly given just 24 hours to comply.
Authorities are also pursuing financial penalties against businesses accused of political harassment.
Labor Minister Luiz Marinho announced plans to compile a list of offending employers, while senior labor court officials warned that companies could lose access to financing.
“The consequences for those who are irresponsibly continuing down this path will be very severe,” Superior Labor Court president Vieira de Mello Filho warned, citing the possibility of a blacklist.
The measures follow Lula’s alleged electoral victory, which was marred by numerous irregularities.
President Trump has yet to formally recognize the result, describing it as a “very strange election.”

Q: Flávio Bolsonaro has declared himself the “rightful president” of Brazil. Do you agree?
Trump: I’m not going to make a comment about that.
I won’t get involved. It was a very strange election, that’s for sure. pic.twitter.com/CfzV1yuGsb
— Clash Report (@clashreport) October 28, 2026

During his victory speech, Lula also renewed his demands for greater government control over social media.
“We have to regulate them,” he declared, accusing online platforms of interference in the political process.

The mask is OFF.
Hours after being re-selected, Lula’s first move:
“We’re going to have to regulate the social media platforms.”
TRANSLATION: he’s coming for your free speech.
This is what a tyrant sounds like. Once a commie, always a commie. pic.twitter.com/ines6dDJIa
— Dr. Simon (@goddek) October 26, 2026

The post Brazil’s Lula Regime Orders Sweeping Social Media Crackdown Against ‘Electoral Harassment’ After His Disputed Election Victory appeared first on The Gateway Pundit.

Epstein-Linked Megadonor Reid Hoffman Calls to ‘Get Money Out of Politics’

October 30, 2026 MMN Editor Filed Under: THE NEWS

Democrat megadonor Reid Hoffman, who has donated to Democrats such as Texas Senate candidate James Talarico and former President Joe Biden, called for getting “money out of politics.”
The post Epstein-Linked Megadonor Reid Hoffman Calls to ‘Get Money Out of Politics’ appeared first on Breitbart.

Trump’s Sunday Rallies in Kansas, Iowa Added Back to Schedule

October 30, 2026 MMN Editor Filed Under: THE NEWS

President Donald Trump’s rallies in Kansas and Iowa are back on the schedule this Sunday after being canceled on Thursday. 
The post Trump’s Sunday Rallies in Kansas, Iowa Added Back to Schedule appeared first on Breitbart.

Somali ‘Translators’ Seen on Video Apparently Violating Voting Laws in Polling Center

October 30, 2026 MMN Editor Filed Under: THE NEWS

Video in Lewiston, Maine, seems to shows Somali “translators” repeatedly breaking state election laws by coaching “new comer” voters.
The post Somali ‘Translators’ Seen on Video Apparently Violating Voting Laws in Polling Center appeared first on Breitbart.

DOJ Claims Mary Peltola, Democrats Misled Federal Court on Second Dan Sullivan Candidate Scheme

October 30, 2026 MMN Editor Filed Under: THE NEWS

The Department of Justice (DOJ) is claiming Alaska Democrat U.S. Senate candidate and former Rep. Mary Peltola (D-AK) along with other Democrats misled a federal court regarding a scheme to find a second Daniel Sullivan candidate to appear on the ballot against Peltola and Sen. Daniel S. Sullian (R-AK).
The post DOJ Claims Mary Peltola, Democrats Misled Federal Court on Second Dan Sullivan Candidate Scheme appeared first on Breitbart.

Exclusive–Republican Study Committee Previews Choice for Voters on Tuesday

October 30, 2026 MMN Editor Filed Under: THE NEWS

The Republican Study Committee is warning voters the stakes are high in Tuesday’s general election, as far-left House Democrats make plans to reverse spending cuts and launch a series of investigations into the Trump administration if they win control of the chamber.
The post Exclusive–Republican Study Committee Previews Choice for Voters on Tuesday appeared first on Breitbart.

Democrat Administration Approves Double-Digit Hikes in Health Insurance Rates in Michigan, GOP Pushes to Lower Costs

October 30, 2026 MMN Editor Filed Under: THE NEWS

More than three quarters of a million Michiganians will face increases in their health insurance premiums next year under the new rates approved by the administration of Democrat Gov. Gretchen Whitmer.
The post Democrat Administration Approves Double-Digit Hikes in Health Insurance Rates in Michigan, GOP Pushes to Lower Costs appeared first on Breitbart.

Turning The Knife Inward: Xi Purges A Record 33 At Fifth Plenum As China’s Military High Command Shrinks To Two Men

October 30, 2026 MMN Editor Filed Under: THE NEWS

Turning The Knife Inward: Xi Purges A Record 33 At Fifth Plenum As China’s Military High Command Shrinks To Two Men

Another plenum, another record… just not the kind that goes on the economic scoreboard.China’s Communist Party wrapped up the fifth plenary session of its 20th Central Committee on Thursday after four days behind closed doors, and the Xinhua readout confirmed the expulsion of 33 senior officials, the most ever at a single plenum, 16 of them from the military. That includes Gen. Zhang Youxia, until January Xi’s closest ally in uniform and the PLA’s top-ranking general, whose fall we covered in real time back in “Shockwaves In Beijing: Xi Targets His Own Top General, Longtime Confidant, In Elite Purge” (Jan 24).The party says it is “turning the blade inward” to “eliminate serious hidden dangers.” Translation: nobody below Xi is safe, and the purge is accelerating going into next year’s leadership congress, which the plenum formally scheduled for the second half of 2027 and where Xi is all but certain to collect a fourth term.Using Nikkei Asia’s breakdown of who fell and who rose, let’s look at the casualties, the survivors, the promotions and what it all means for 2027.”Offend Thousands Rather Than Fail 1.4 Billion”On Friday morning Beijing sent Zhang Fuhai, deputy secretary of the Central Commission for Discipline Inspection (CCDI), to take a victory lap. He told reporters that Xi has led an “unprecedented” drive with the resolve to “offend thousands rather than fail 1.4 billion people,” and that “the results are plain for all to see.”Well, the results are certainly plentiful. According to Zhang, authorities have punished almost 8 million people, including 963 senior officials, since the 18th Party Congress in November 2012, and 680,000 were disciplined in the first nine months of this year alone. And there is more to come: the CCDI pledged to intensify its “high-pressure deterrence” and to “leverage technology” to make it more effective, which sounds about as relaxing as it reads.Besides the generals, the headline civilian scalps were:Ma Xingrui, ex-Politburo member, Xinjiang party boss and former president of China Aerospace Science and Technology Corp. (CASC). Expelled in July, per Reuters, on charges ranging from selling promotions to “large-scale family corruption” (and exchanges of “power for sex”), making him the third sitting Politburo member purged this term;Liu Jianchao, ex-head of the party’s International Department and once the foreign ministry’s best-known spokesman, missing from public view since August of last year and at one point tipped as the next foreign minister. As ChinaTalk pointed out, Liu also once ran Xi’s global manhunt for corrupt officials, so the hunter has officially become the hunted;Lan Tianli, former chairman of the Guangxi Zhuang Autonomous Region government.Look further down the list and Bloomberg’s tally shows a pattern: China’s aerospace and defense-industrial complex has been gutted. Besides Ma (ex-CASC), the newly confirmed names include former MIIT minister Jin Zhuanglong, CASC’s former chairman Lei Fanpei and general manager Zhang Zhongyang, CASIC’s former chairman Yuan Jie, and China State Shipbuilding’s former chairman Wen Gang, together with former top brass of the Eastern, Northern and Western Theater Commands. In other words, the people who build China’s rockets, warships and missiles, and the people who would command them in a war, have been the main source of empty chairs.As usual, the charges were “serious violations of discipline and law,” with no details. For Zhang Youxia and Liu Zhenli, the September expulsion notice added that they were “disloyal and dishonest to the Party” and guilty of “forming cliques,” while the rumor mill went considerably further back in January:China’s Top General Accused of Giving Nuclear Secrets to U.S.Bribery allegations have also been leveled against Gen. Zhang Youxia, whose downfall carries implications for the country’s military readinesshttps://t.co/GxtBJzcJUx— zerohedge (@zerohedge) January 25, 2026
(The official notice never mentioned nuclear secrets, though as we noted in “China’s Sacked Top General Accused Of Leaking Nuclear Secrets To US: Report” the day after his downfall, the WSJ report was enough to get Beijing’s rumor mill working overtime.)Two Men StandingThe single most striking number from the plenum may be two. Of the seven men who made up the Central Military Commission, the body that runs the PLA, after the 2022 Congress, only two remain: Xi himself and Zhang Shengmin. The plenum made no new appointments, so five seats are still empty.Regular readers know this did not happen overnight. Defense minister Li Shangfu went first, then He Weidong and Miao Hua, then the October 2025 wipeout we described in “China Expels 9 Top Generals, Including Two From Communist Party Leadership, In Sweeping Purge”:China Expels 9 Top Generals, Including Two From Communist Party Leadership, In Sweeping Purge https://t.co/YMXQmOvyLb— zerohedge (@zerohedge) October 18, 2025
And then came January, when Zhang Youxia and Joint Staff chief Liu Zhenli disappeared from a high-profile party study session. One former CIA analyst described it to the NYT at the time as “the total annihilation of the high command.” Nine months later, that looks about right.The one man who has gone up while everyone else went down is Zhang Shengmin, the CMC’s former discipline chief, who led the military’s anti-corruption work from 2018 until July of this year and was made vice chairman at last year’s fourth plenum. On Thursday he was also added to the Politburo, its only military member, and as Goldman’s Sydney futures desk flagged in its Friday morning comment (available to pro subs), the first new member to join between five-yearly congresses in over three decades. The last time it happened was 1994, when Jiang Zemin slotted in his associate Huang Ju.So, in a fitting twist, the man who ran the purges is the one who gets promoted for them.Eurasia Group’s China team (analysts including Mingda Qiu) called Zhang “Xi’s bridge from a purged military to a rebuilt one,” while adding that “the construction is far from complete.” The note continues:”Zhang’s elevation restores the norm that CMC vice chairmen sit on the Politburo, a practice that was interrupted last January with the ouster of Zhang Youxia. Promoting him now, a year before the 2027 Party Congress, suggests that Xi intends Zhang to span both sides of that transition, anchoring a hollowed-out command structure today and laying the groundwork for the rebuilt one tomorrow.”Then comes the Taiwan question, which every reader is probably asking. Eurasia’s view is that “Xi continues to distrust his military leadership” and is “still vetting his top officers rather than fully relying on them or preparing for a near-term conflict,” so the near-term probability of a war over Taiwan “remains very low.” That’s broadly where the consensus sits, although a separate camp argues that a hollowed-out PLA leans more on gray-zone coercion to show it still works, a point we discussed in “PLA Purge May Be Driving China To Rely More On Military Pressure Against Taiwan: Analysts”:PLA Purge May Be Driving China To Rely More On Military Pressure Against Taiwan: Analysts https://t.co/dqbMYQ3UCO— zerohedge (@zerohedge) September 12, 2026
Either way, a commander in chief who doesn’t trust five of his six top generals enough to replace them is probably not planning an amphibious invasion any time soon. Spot the irony: a purge sold as making the PLA stronger is, for now, the best near-term argument that it is in no shape to fight.Empty Chairs: Lowest Turnout Since The Cultural RevolutionThe damage shows most clearly in the attendance sheet. Per Xinhua, just 162 of the Central Committee’s 205 full members showed up this week, along with 117 alternates, for a total of 279. When the current committee was formed in October 2022, it had 376 people; the third plenum in July 2024 drew 364 and last October’s fourth plenum 315.According to Bloomberg’s tally, that is the lowest attendance since the chaotic years of the Cultural Revolution and the first time turnout has fallen below 300 in Xi’s 14 years in power. Put differently, roughly one in four seats in the room where China’s leadership is formally chosen is empty, and this is the body that will rubber-stamp next year’s lineup.As Asia Society’s Neil Thomas put it, “more empty seats underscores the plenum’s focus on Xi’s vision of strict internal discipline.” The plenum also passed a resolution on “comprehensive and strict governance over the party,” and confessed that it had “squarely confronted the grim reality that party leadership had at times weakened or hollowed out.” Hollowed out, indeed.Who Rose: Bankers, Steelmen And The ’70 Hou’To refill at least some of the seats, 10 alternates were promoted to full Central Committee membership, and, as Nikkei notes, four of them were born in 1970 or later, part of what China calls the “70 hou” generation. Their resumes have a common thread: most built their careers in state-owned industry and state banks before moving into government:Lu Dongliang (b. 1973): governor of coal-heavy Shanxi, former chairman of state aluminum giant Chalco;Liu Jie (b. 1970): governor of Zhejiang, where Xi was once party secretary and from where he has promoted a long line of lieutenants; previously president of Xiangtan Iron and Steel;Liu Jun (b. 1972): president and vice chair of ICBC, China’s largest lender by assets, previously chair of Bank of Communications;Liu Qiang (b. 1971): deputy party secretary of Shandong and party boss of Jinan, previously vice president of Bank of China;Xing Shanping (b. 1968): Shaanxi deputy party secretary, a notable promotion for a woman in an overwhelmingly male leadership.Two state-bank executives elevated in one sitting tells you something about where Beijing sees its next set of problems: local debt cleanup and bank recapitalization will be run by men who know the balance sheets. And managers who spent careers running Chalco and Xiangtan Steel are, presumably, very comfortable taking orders.Succession watchers are paying attention. Xi would be 79 at the end of a fourth term in 2032, so the speculation has skipped a generation. University of Tokyo professor Shin Kawashima, who believes Xi will get another term “for sure,” said he is watching “those joining the central committee and born in the 1970s” for clues on who might be next in line. Meanwhile, the people who would normally be next in line, the 1960s cohort, have been thinned out by the very purges that created these openings.The Bigger Picture: Xi’s Talent Pipeline ProblemWhich brings us to the real story heading into 2027. As Bloomberg put it on the eve of the plenum, Xi now faces “a problem of his own making: his sweeping purges are draining the pipeline he needs to staff senior roles next term.” The to-do list for next year’s congress is long:Five of the seven-man Politburo Standing Committee would retire if age norms hold, and veteran foreign minister Wang Yi (73) is expected to step down;The CMC needs five new members, more or less from scratch;The Politburo itself needs restocking after three members were ousted this term, its widest purge since the Cultural Revolution.The churn is just as visible in the provinces. Bloomberg’s analysis of provincial postings shows that the average tenure of a provincial party chief has collapsed from 43 months in Xi’s first term to 26.5 months in his third. Anhui and Qinghai have each had three party chiefs since October 2022, and one regional boss lasted just nine months.Why should markets care? Because, as UC San Diego’s Victor Shih told Bloomberg, “officials will have a shorter time horizon and be more inclined to deal with the latest edict from the center instead of longer issues of reform or economic growth.” Oxford Economics’ Sheana Yue makes the same point in economist-speak, warning that the “emphasis on political discipline could create some tensions with Beijing’s economic objectives,” because “local officials may prioritize political compliance over experimentation, potentially complicating the implementation of growth initiatives.”In other words, in a system where the safest career move is to do nothing, the stimulus Beijing keeps announcing has a harder time reaching the real economy, a problem that will sound very familiar to anyone who has followed China’s property bust. And if anyone hoped the purge would ease once the plenum was over, Xi used a speech published this month to warn against “two-faced people” in the ranks, vowed that “sick trees” must be uprooted, and told cadres frozen by fear that “procrastination before the reshuffles” was also unacceptable. So: don’t be corrupt, don’t be idle, and don’t make a mistake. Good luck.American University’s Joseph Torigian sums up where that leaves the system: “Since the last Party Congress, Xi has lost faith in so many Central Committee members. He is going to have to promote a lot of people next year and doesn’t want to make the same mistake again. So the intensity of review and punishment will inevitably intensify.”Loyalty First, Growth LaterBack in October 2025, as the fourth plenum unveiled China’s next five-year plan, the headlines were about self-reliance in science and tech. Twelve months later, the fifth plenum was almost entirely about who can be trusted, which tells you how Xi has ordered his priorities heading into 2027.The optimistic read, and the one Beijing is selling, is that a cleaner, more disciplined party and a rebuilt PLA come out of this stronger. The more likely read, in our view, is that the purge cycle intensifies into the congress: the CMC stays half-empty while candidates get vetted (and re-vetted), provincial officials keep their heads down rather than experiment, and the bench of experienced leaders for the post-Xi era keeps shrinking, which, conveniently, makes the man at the top even harder to replace. For investors that means more top-down policy and slower transmission, and for anyone still modeling an imminent Taiwan war, a PLA leadership that its own commander in chief doesn’t yet trust.And for those of the 33 who had hoped for a quiet exit, ChinaTalk has some bad news: “Expect a few of the 33 in January’s installment of the state TV documentary where fallen officials confess on camera.” Prime-time viewing.
Tyler Durden
Fri, 10/30/2026 – 20:30

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