China: the challenges awaiting the new government

At the People's Palace in Beijing, March 10, 2023. AP - Mark Schiefelbein

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In China, the annual meeting of Parliament ends, with, this Sunday, March 12, the appointment of the members of the Chinese government.

Little surprise in the new and the maintenance of senior officials in the economic field, in order to reassure the financial markets.

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With our correspondent in Beijing,

Stéphane Lagarde

The new faces of China's State Council confirmed by delegates gathered at the People's Palace this morning are no strangers.

Appointed by the new Prime Minister, most are long-time collaborators of the Head of State.

Stability and economic recovery

And if Xi Jinping's rivals have had to retire, others have obtained waivers to remain in office.

This is the case of the Governor of the Central Bank and the Minister of Finance who have passed the age limit, but remain in charge of economic and monetary policy.

Yi Gang and Liu Kun are in the same boat, that of increased systemic financial risks (real estate crisis, provincial indebtedness) and slower Chinese growth.

Faced with social discontent, the Chinese Communist Party has made stability and post-Covid-19 economic recovery a priority.

Knowing that efforts for structural and regulatory change in the Chinese economy are still ongoing.

Fight against dollar hegemony

A national administration of financial regulation must therefore be set up during this third term of Xi Jinping.

Another priority, in the context of the trade war with the United States: the fight against the risks of technological asphyxiation and against the hegemony of the dollar, in particular

through

the promotion of payments in yuan.

The Ministers of Trade, Agriculture and Technology are also maintained in their posts.

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To read also

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China: Li Qiang, a faithful of Xi Jinping as Prime Minister

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