Lee Kang, Governor of the People's Bank of China, Unexpectedly Retained... Background is 'Economic Stability'

Li Chang, Premier of the State Council of China, Announces Reappointment of President Lee Kang

Yi Gang, Governor of the People's Bank of China, has been reappointed. This decision is seen as part of China's goal to achieve economic growth amid stability. The People's Bank of China is the central bank of China.

On the 12th, Li Qiang, Premier of the State Council of China, announced the reappointment of Governor Yi Gang at the National People's Congress (NPC) meeting. Inside China, there had been expectations that Governor Yi Gang, appointed in 2018, would be replaced with the launch of the new cabinet (State Council) this year, but the outcome was the opposite. Premier Li Qiang also announced the reappointment of Liu Kun as Minister of Finance and Wang Wentao as Minister of Commerce.

With Premier Li Qiang and Vice Premier He Lifeng positioned as the top two economic leaders, the decision to retain key economic figures reflects a pursuit of stability. Given that last year's economic growth rate was only 3%, China believes that achieving around 5% growth this year requires growth amid stability. Plans have also been announced to revive the economy focusing on expanding domestic demand.

Lee Kang, Governor of the People's Bank of China
[Photo by Yonhap News]

There is also an assessment that by keeping key figures in the Ministry of Finance and the central bank unchanged, China intends to focus on resolving local government debt issues. Due to the implementation of a strict zero-COVID policy and a downturn in the real estate market, local government finances have deteriorated.

The newly appointed Zheng Shanjie, Director of the National Development and Reform Commission (NDRC), is responsible for China's macroeconomic policy. Director Zheng Shanjie previously served as Party Secretary of Anhui Province.

Meanwhile, on the same day, Premier Li Qiang named four individuals as vice premiers, including Ding Xuexiang, a member of the Standing Committee of the Political Bureau of the Communist Party of China, and He Lifeng, a member of the Political Bureau. Vice Premiers Ding Xuexiang and He Lifeng are considered close associates of President Xi Jinping.