From the comfort of working behind-the-scenes, China’s new Vice-Prime Minister Liu He — a close confidant of President Xi Jinping — has been brought into the limelight to defend the economy that is facing mounting debt and a possible trade war with the United States.
Mr. Liu will be at the helm to re-rail China’s economy, which is no longer dependent on reckless borrowings, and work out plans to reduce existing debt, without dropping growth drastically. He was endorsed by delegates who had gathered for the annual session of the National People’s Congress (NPC), China’s parliament.
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Analysts say that Mr. Liu is being given a free hand, with few heavyweight challengers, to exercise his authority for steering the economy towards an assured “soft landing.”
Unsurprisingly, the NPC backed the appointment as the head of China’s central bank, Yi Gang — a solid technocrat, but who, by most accounts, does not carry the political weight of his predecessor, Zhou Xiaochuan.
Nikkei Asian Review quoted Fraser Howie, a Singapore-based analyst as saying that, “Yi Gang has now taken over a mature role, but one very much at the call of Liu He and Xi Jinping.”
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Among other appointments endorsed by the NPC on Monday, Han Zheng, a member of the Communist Party Politburo, also joined the ranks as vice-premier. Mr. Han, as former mayor of Shanghai, has earned the reputation for efficiently running state-owned enterprises. It is likely that he will work closely with Mr. Liu to address the debt accumulated by the several state companies, especially after the 2008 lobal financial crisis, which led to a binge of debt fueled growth in China.
The deputies to the NPC also backed Wei Fenghe, a former commander of the People’s Liberation Army Rocket Force, as Defence Minister.
Besides, China’s Foreign Minister Wang Yi has been elevated to the post of State Councilor, in charge of both the portfolios.