China chooses continuity, retaining Central Bank Chief, Finance Minister
The Hindu
President Xi Jinping broke with convention to retain Yi Gang as Governor of the People's Bank of China and Liu Kun as Finance Minister
China unexpectedly kept its Central Bank Governor and Finance Minister in their posts at the annual session of the rubber-stamp parliament on March 12, prioritising continuity as economic challenges loom at home and abroad.
President Xi Jinping, who has been installing allies in key roles in a government reshuffle as he begins a third five-year term, broke with convention to retain Yi Gang (65) as Governor of the People's Bank of China (PBOC) and Liu Kun (66) as Finance Minister. Both men have reached the official retirement age of 65.
Across the slate of appointments, there were fewer changes than anticipated, with most Cabinet Ministers keeping their posts. However, further announcements are expected in coming weeks as China implements a reorganisation of its financial regulatory structure and other government bodies.
"Opting for continuity in these critical economic roles suggests an emphasis on credibility and stability," said Mattie Bekink, China director at the Economist Intelligence Corporate Network.
"It is also perhaps a tacit acknowledgment of some of the challenges for Beijing at the moment," she said. "The real challenge for this third Xi administration is whether it will address structural imbalances in China’s economy and undertake reforms necessary to ensure China’s long-term competitiveness."
The government has set a 2023 economic growth target of around 5%, up from 3% last year, which was among the weakest performances in decades.
China's statistics bureau head, Kang Yi, told the parliamentary session on Sunday that China's economy still contains deep structural "contradictions" and "problems", according to state media.