Jiang, Hu head for showdown

Will Jiang Zemin relinquish his position as head of China's armed forces at the 16th  Plenum of the Central Committee which begins Thursday?

If he does, it would clear the decks for Hu Jintao, who succeeded Jiang as China's President last year, to assume complete charge of country.

But signals from Beijing indicate that despite speculation about Jiang's imminent resignation, the former President is unwilling to do so without ensuring a plum posting for himself as well his followers in the new dispensation.

Jiang stepped down as General Secretary of the Communist Party in 2002 and President in 2003. But as chairman of the Central Military Commission, he is still the head of the People's Liberation Army.

Denying any rift between the two leaders 'purely fictitious,' Foreign Ministry spokesman Kong Quan did not comment on the proposed resignation.

This followed a report in the New York Times which suggested Jiang would quit as military chief at the conference this week amidst differences between the two leaders.

But in a report titled 'China's Hu tightens grip on power', the Financial Times quoted Communist Party insiders as saying that Hu Jintao "has consolidated his power through a combination of manoeuvring and compromise with his predecessor and rival Jiang Zemin."

Special: The passing of the baton  

"Hu is now stronger than Jiang. Even officials promoted by Jiang are now co-operating with Hu. That is the way it works. They value their future more than their loyalty to Jiang," it quoted a party official as saying.

The late Deng Xiaoping had relinquished command of the army to Jiang in 1989, two years after resigning from the ruling politburo. But the Times said despite pressure to step down,  Jiang, 78, is unlikely to follow Mr Deng's precedent at this week's plenum in spite of recent speculation in party circles that he is planning to retire.

More reports from China