Xi Jinping’s aide He Lifeng, tipped to steer China’s economic system, has challenges to face

He Lifeng, a confidant of Chinese President Xi Jinping, was elevated to the ruling Communist Party’s Politburo. But he might wrestle to take care of his predecessor’s coverage clout.

Beijing,UPDATED: Oct 30, 2022 12:42 IST

He Lifeng, Chairman of China’s National Development and Reform Commission, attends a information convention in Beijing (Reuters picture)

By Reuters:

He Lifeng, head of China’s state planning company, is prone to succeed the nation’s financial tsar Vice Premier Liu He in March, however might wrestle to take care of his predecessor’s coverage clout.

He, 67, a confidant of President Xi Jinping, was elevated to the ruling Communist Party’s Politburo throughout its once-every-five-years congress this month. That paves the way in which for He’s anticipated promotion because the 70-year-old Liu is because of step down in March.

The high precedence for He can be to assist Li Qiang – one other Xi ally, tipped to turn out to be the brand new Premier in March – to drag the world’s second-largest economic system out of its worst downturn in a long time amid disruptive COVID-19 curbs and a protracted property disaster.

The departing Liu, Xi’s high financial adviser and a childhood pal, holds an unusually highly effective portfolio: it covers financial coverage, the monetary sector and commerce ties with Washington, overshadowing the position of outgoing Premier Li Keqiang.

Xi, who secured a precedent-breaking third time period as president on the occasion conclave, might wish to restore a number of the premiership’s earlier energy underneath the incoming Li Qiang. Some analysts say a part of the expanded position that Liu constructed up throughout his time as financial tsar could possibly be taken over by different high officers.

“If He Lifeng does indeed get the job, his portfolio will overlap with that of the new Premier, Li Qiang,” Julian Evans-Pritchard at Capital Economics mentioned in a be aware. “It remains to be seen who will have more influence in practice.”

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Liu, who has been vice premier since 2018, is seen by China watchers because the brains behind earlier reforms, together with these to cut back extra manufacturing facility capability and monetary dangers. The Harvard-trained economist was additionally Xi’s level particular person on commerce negotiations with Washington, due to his worldwide expertise and fluent English.

He Lifeng, a home-groomed economist and bureaucrat with shut Xi ties, had labored for 25 years in Fujian province earlier than shifting to the northern municipality of Tianjin in 2009. His observe document suggests he’s prone to favour a extra statist strategy to financial administration, Evans-Pritchard mentioned.

Serving underneath Xi in Fujian within the Eighties, He attended Xi’s marriage ceremony ceremony when he married his second spouse, the favored singer Peng Liyuan, sources have mentioned.

In 2014, He was named vice head on the National Development and Reform Commission – the state planning company – earlier than taking full management in 2017. Since then He has joined Xi on home excursions, diplomatic conferences and different engagements.

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The anticipated departure of pro-reform officers, together with Liu, high banking regulator Guo Shuqing and central financial institution chief Yi Gang, has raised issues over the standard of policymaking as officers turn out to be more and more centered on shows of loyalty to Xi and fewer on governance and financial efficiency.

“The chance of making policy mistakes will be greater if officials only talk about politics and do not follow economic rules,” a coverage supply mentioned, talking on situation of anonymity.

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Published On:

Oct 30, 2022