Chinese Premier Li Qiang is reportedly confirmed as head of China’s new financial watchdog—the Central Financial Commission (CFC)—after presiding over a finance meeting on Nov. 20. However, one China observer speculates that Vice Premier He Lifeng could marginalize his authority within the commission.
The Marginalized State Council
Mr. Li and Mr. He are both close confidantes of Xi.In his first meeting of the CFC, Mr. Li emphasized the need to build up a nation with a robust financial sector.
China expert Wang He told the Chinese language edition of The Epoch Times that Xi’s reform plan aims to increase the Party’s political control, and consequently, it has curtailed many functions of the State Council, which traditionally serves as the highest administrative body, responsible for enforcing laws and overseeing the government bureaucracy.
“Xi is the actual decision-maker of the Central Financial Commission,” he said.
As the office director, Mr. He directly manages specific affairs and is likely “to overshadow Li Qiang in terms of real power.”
He added that although Mr. He is a subordinate of Mr. Li, Mr. He tends to take control in executing Xi’s economic policies.
Earlier, Mr. He assumed the role of heading the office of the Central Commission for Financial and Economic Affairs, the Party’s primary economic policy-making body, succeeding former Vice Premier Liu He. Xinhua disclosed on Oct. 29 that Mr. He became Xi’s new economic czar.
Before his retirement, Mr. Liu served Xi as the key player in Beijing’s trade negotiations with Washington under the Trump administration.
After Mr. He took over Mr. Liu’s post, he conducted a China–France high-level economic dialogue with French Counselor Emmanuel Bonne in Beijing on Oct. 29. He also held discussions with U.S. Secretary of Treasury Janet Yellen in San Francisco prior to the Asia-Pacific Economic Cooperation (APEC) forum.
However, Mr. Wang has doubts about Mr. He’s credentials and expertise in economics and finance. “He has no experience. Increasing [the CCP’s] control and oversight might lead to higher risks in the financial sector,” he said.
Mr. He is regarded as more of a bureaucrat and “mainly implements” Xi’s policies, according to a policy adviser who spoke to Reuters on the condition of anonymity.
In a 2019 report by The New York Times, Mr. He was in charge of a major construction project—dubbed “China’s Manhattan”—in Tianjin. Launched in 2009, the project aimed to foster economic growth in northern China. However, due to the sluggish economy, many structures remained vacant, with four-fifths of the office space still unoccupied a decade later.
