China yesterday retained its central bank governor in a surprise move, as the country appointed a Cabinet focused on fighting economic headwinds.
At a meeting of the Chinese National People’s Congress, Yi Gang (易綱) was confirmed as governor of the People’s Bank of China against expectations that he would step down, having reached retirement age.
China also retained two top economic officials — Minister of Commerce Wang Wentao (王文濤) and Minister of Finance Liu Kun (劉昆) — as well as National Health Commission Director Ma Xiaowei (馬曉偉), who oversaw the country’s “zero COVID” policy.
Photo: Reuters
The Cabinet faces the task of revitalising the Chinese economy, which last year expanded just 3 percent — one of its weakest performances in decades.
General Li Shangfu (李尚福), who was sanctioned by the US government in 2018 for buying Russian weapons, was named minister of national defense.
US-China tensions have worsened in recent weeks, dragged down by the entry of an alleged Chinese spy balloon into US airspace and accusations that Beijing might supply Moscow with weapons to use against Ukraine.
Chinese President Xi Jinping (習近平) this week accused the US of leading an effort of “containment, encirclement and suppression of China.”
The congress also confirmed key Xi allies to its Cabinet.
Top Xi aide Ding Xuexiang (丁薛祥) and longtime Xi colleague He Lifeng (何立峰) were promoted to vice premier positions by newly appointed Chinese Premier Li Qiang (李強).
Ding and He received almost all votes from more than 2,900 legislators, with former Tianjin mayor Zhang Guoqing (張國清) and former Shaanxi Province Chinese Communist Party (CCP) secretary Liu Guozhong (劉國中) also selected as vice premiers.
Xi has stacked the top levels of government with loyalists as he cements his grip on power, with trusted ally Li confirmed as premier on Saturday, just a day after Xi was unanimously selected by legislators for a third term as president.
“Both Ding and He have been close political allies to President Xi, and Mr He and President Xi have known each other for decades,” Nomura analysts wrote in a recent note.
“Such close relationships may help the new government’s policy delivery and cross-ministry coordination,” the analysts said.
Xi’s decision to pack the CCP’s top leadership with loyalists has stoked concerns about him prioritizing ideology at the expense of economic growth.
China has set a growth target of about 5 percent for this year, one of the lowest in decades, as the world’s second-largest economy widely missed its growth target in the face of strict COVID-19 curbs and a simmering property crisis.
The national legislature this week approved a broad restructuring of government departments, aimed at boosting self-reliance in manufacturing.
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