China is refuelling as President Xi Jinping announces his key economic players who will be playing the lead role in reshaping the future of the nation. Liu He has been elected as the new vice premier. Liu was the top economic advisor to President Xi while the Yi Gang, the Vice Governor of the Central Bank has taken over the command of the People’s Bank of China (PBOC).
Liu is seen as a rising star in the politics of the nation and is said to have a deep and comprehensive understanding of the economic issues of the country. He had bagged the top Chinese Economics Study Award in 2015 for his insightful research on Global Financial Crisis and is said to be the brain behind President Xi’s supply-side reforms which are pushing ahead for cutting off excessive factory capacity and is also keen to do away with low-value industries. Thus, Liu will be working at cutting riskier finance initiatives and focus on steady debt build-up thus eliminating systemic risks. Liu also became an elected member of the Politburo, which is the second highest powerful body in the country after Politburo Standing Committee. Liu has also headed General Office of the ruling Communist Party’s Central Leading Group for Financial and Economic Affairs. It is reported that the banking and insurance regulators to effectively manage financial risks. This will further empower the Central Bank and may lead to the creation of new ministries in the Xi government.
Yi Gang has served as the vice governor of PBOC since 2008 and has been behind driving the monetary and currency policy, which also included the monumental devaluation of the Yuan in 2015. The appointment of Yi is a signal of continuation of the ongoing policies of PBOC. Yi is considered a pro-reform man and one of the highest-ranking sea-turtle- a term often used in China for Chinese who return from overseas. Yi has received a PhD in Economics from the University of Illinois. He also led State Administration of Foreign Exchange from 2009-2016.
Liu Kun is the new Finance Minister. He was previously the head of the parliamentary budget. Zhon Shan has been re-elected as the Minster of Commerce while He Lifeng is again elected as the head of NDRC.