China’s new economic tsar faces challenges emulating his predecessor

China’s new economic tsar faces challenges emulating his predecessor

China’s new “economic tsar” He Lifeng is gaining power as one of President Xi Jinping’s top lieutenants, although some sources suggest that he has not yet reached the same level of influence as his predecessor in financial markets and the diplomatic community.

He Lifeng, 68, took over from the internationally respected Liu He as one of China’s four vice premiers during the annual parliament session in March. The extent of his portfolio was unclear until recently when state media referred to him as the director of a powerful Communist Party economic body.

China watchers believe that He Lifeng is also likely to become the head of the new Central Financial Commission, the highest-ranking financial watchdog in China. This commission is being established to strengthen the Party’s control over the country’s $61 trillion financial industry.

As the head of the Central Financial Commission, He Lifeng will be responsible for addressing the local government debt crisis and the downturn in the property sector. These two crises pose a significant threat to the long-term growth potential of the world’s second-largest economy.

He Lifeng accompanied President Xi on his first visit to China’s central bank last month and is playing a prominent role in trade talks with Washington and Europe. He is described as “tough and uncompromising” and does not interact in English with his counterparts.

Liu He, who was trained at Harvard, had a significant influence on policies and overshadowed former Premier Li Keqiang. Liu was credited with key industrial and financial reforms that contributed to China’s impressive growth rates in recent decades.

In contrast, He Lifeng is seen as more of a bureaucrat who mainly implements policies from President Xi. He has a lower profile and has kept a relatively low profile since assuming his position in March.

Investors and economists have expressed frustration with China’s lack of concrete policy measures to achieve its economic goals. He Lifeng’s cautious approach may be due to the reduced power of the cabinet under the new structure, which has given the ruling Communist Party more decision-making power.

He Lifeng’s background in economic planning and his familiarity with macroeconomic control in the real economy sector make him well-suited for his role. Under the Party’s leadership, there will be closer cooperation among the top economic planner, central bank, and finance ministry.

He Lifeng has a long history with President Xi, dating back four decades. He has worked under Xi in various capacities and has a close relationship with him. This close tie and loyalty to Xi make it easy for He Lifeng to receive policy guidance from the top and implement it.

While He Lifeng’s lack of direct experience in managing the financial sector is seen as a shortcoming, his relationship with President Xi and his ability to implement policies make him a valuable asset.

In conclusion, He Lifeng is emerging as a powerful figure in China’s economic landscape, although he has yet to reach the same level of influence as his predecessor. His role in addressing economic challenges and his close ties to President Xi position him as a key player in China’s economic future.

About News Team

Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

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