A little jump on the spot. Faced with growth that was weaker than expected, Xi Jinping decided to change nothing, or almost nothing. The Chinese leader thus kept in office the director of his central bank on Sunday, to everyone's surprise. Yi Gang's reappointment as governor of the People's Bank of China was confirmed at a meeting of China's parliament, amid expectations that Yi, who has reached retirement age, would step down.

China has also retained other top economic officials, including Wang Wentao and Liu Kun, who will remain minister of commerce and minister of finance, respectively, as well as the director of the National Health Commission, Ma Xiaowei, who oversaw the country's "zero Covid" policy.

Li Shangfu at the Defense

Gen. Li Shangfu, who was sanctioned by the U.S. government in 2018 for buying Russian weapons, has been appointed defense minister. Tensions between the United States and China have escalated in recent weeks, following the entry of a Chinese spy balloon into US airspace and accusations that Beijing could supply Moscow with weapons to use against Ukraine.

Beijing has also confirmed key allies of President Xi Jinping in his new cabinet. Ding Xuexiang, one of Xi Jinping's top aides, and He Lifeng, a longtime colleague of the Chinese president, have been appointed vice premiers by new Premier Li Qiang.

Ideology in spite of growth?

To consolidate his grip on power, Xi filled the highest echelons of government with loyalists, with his loyal ally Li Qiang confirmed as premier on Saturday, a day after Xi was unanimously re-elected for a historic third term as president.

"Both Ding and He have been close political allies of President Xi, and Mr. He and President Xi have known each other for decades," Nomura analysts wrote in a note this week. "This close relationship could help the new government implement its policy and ensure inter-ministerial coordination," the analysts said.

Xi Jinping's decision to rally loyalists at the top of the Communist Party has revived fears that he is prioritizing ideology over economic growth. China has set a growth target of "around 5%" for 2023, one of the lowest in decades, as the world's second-largest economy largely missed its growth target in the face of tight restrictions and a simmering housing crisis.


  • World
  • China
  • Growth
  • Economy