China keeps its central bank chief to everyone’s surprise

Unexpected. While Chinese growth has increased by only 3% this year, its lowest figure in decades, the Chinese Parliament has decided to maintain this Sunday, Yi Gang, the director of its central bank. An unexpected decision on the international scene, especially since Yi Gang, 65, had reached retirement age. Other economic officials have also been reappointed, such as Wang Wentao and Liu Kun, Minister of Commerce and Minister of Finance respectively. Decisions that raise fears of an ideological rather than economic strategy by the Chinese president at a time when China is struggling in its growth.

China: exports and imports at half mast in January and February

Figures in the red for several months

Indeed, the beginning of the year was painful for the Chinese economy. With US protectionism and the general context of high inflation, exports fell 6.8% year on year in January and February combined, according to customs statistics. Sales had even reached their lowest point in December, experiencing their biggest drop since the start of the Covid pandemic.

However, the government had bet on the lifting of restrictions to revive its economy paralyzed for 3 years due to the drastic health measures imposed throughout the country. But this exit from the restriction did not have the desired effect, with a surge in Covid cases which blocked production and supply chains. Result: imports fell by 10.2% over one year. Figures that cast doubt on the Chinese growth of 5% announced for 2023.

Xi Jinping strengthens his authority

Despite these poor results, Xi Jinping has decided to keep a large part of his ministers. Thus, in addition to the retained senior economic officials, the Chinese president has kept Ma Xiaowei at the head of the National Health Commission, despite a highly contested “zero covid” policy in the country.

Beijing also announced the postings of Ding Xuexiang and He Lifeng, two longtime aides to Xi Jinping, as deputy prime ministers to new Premier Li Quiang. The Chinese president has only cemented his power by placing many of his longtime loyalists in government. As a reminder, Xi Jinping was re-elected on Friday March 10 for a third term in 2,952 votes for, zero against and no abstentions.

China “must only rely on itself” for industrial and agricultural production, says Xi Jinping

Tensions with the United States still high

Finally, one of the announced appointments could continue to fuel tensions between the United States and China. General Li Shangfu, accused of buying Russian weapons and sanctioned by the US government in 2018, has been appointed defense minister. An appointment that supports tensions between the two great powers after the entry of a Chinese spy balloon into American airspace in recent weeks.

And as if the fire wasn’t hot enough, the Chinese president directly criticized the United States, blaming « a policy of containment, encirclement and repression against China” in a report published Monday evening.

(With AFP)