China removes reformist finance minister

China has removed Monday its high-profile, reformist finance minister from the post in a shuffle that comes as President Xi Jinping positions trusted allies in key roles and Beijing prioritizes short-term growth over major overhauls.

The shuffle put more senior government posts in the hands of Xi loyalists ahead of a twice-a-decade Communist Party Congress next fall that will shape policy for years to come.

Xi’s supporters say he still faces pockets of political resistance and needs to consolidate power further to enact meaningful economic restructuring in his second five-year term. Lou Jiwei, the ousted finance minister, was an outspoken Communist Party veteran picked for the job for his competence rather than a close relationship with Xi.

Within China’s political, academic and business elite, however, there are concerns that Xi is increasingly focused on hitting growth targets and suppressing dissent rather than restructuring the economy and tackling other urgent problems. The latest moves on Monday include a rare intervention in the politics of Hong Kong and a plan to boost coal power despite a pledge to battle China’s severe air pollution.

Source: MarketWatch