Unprecedentedly, China retained its central bank chief

China retained its central bank chief

Beijing: China retained its central bank chief in an unexpected decision on Sunday, as the nation focuses on combating economic headwinds. Yi Gang was confirmed as governor of the People’s Bank of China at a meeting of China’s rubber-stamp national legislature to appoint the country’s new cabinet, contrary to expectations that Yi, who was nearing retirement age, would step down.
Wang Wentao and Liu Kun will continue to serve as ministers of commerce and finance, respectively, for the Chinese government.

The cabinet is tasked with revitalising the Chinese economy, which grew by only three percent last year — one of the weakest performances in decades.

The Chinese housing market, which, along with construction, accounts for more than a quarter of the country’s gross domestic product, remains in a decline since Beijing began clamping down on excessive borrowing and speculative excess in 2020.

Beijing also confirmed President Xi Jinping’s important allies to its administration.

Li Qiang, the new premier, nominated Ding Xuexiang, a top adviser to Xi, and He Lifeng, a longstanding colleague of Xi’s, to the position of vice premier.

Ding and He received nearly all of the ballots from over 2,900 legislators, and former mayor of Tianjin Zhang Guoqing and former Shaanxi province party secretary Liu Guozhong were also chosen as vice premiers.

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As he consolidates his hold on power, Xi has piled the highest levels of government with loyalists. On Saturday, Xi’s trusted ally Li Qiang was confirmed as premier, a day after Xi was unanimously selected by legislators for a precedent-breaking third term as president.

Analysts at Nomura wrote in a recent note, “Both Ding and He have been close political allies of President Xi, and Mr. He and President Xi have known each other for decades.”

Analysts stated that such tight relationships could assist the new government’s policy implementation and interdepartmental coordination.