Overview

• Chinese Vice Premier He Lifeng, a close confidant of President Xi Jinping, has been appointed as the director of the Central Finance and Economic Affairs Commission, a key Communist Party economic body head by Xi himself, which is responsible for formulating and implementing China's economic policies, trade ties and financial sector.
• He's ascent further solidifies President Xi's control over economic policy, and his role will be crucial in tackling existing challenges such as a domestic property crisis, high youth unemployment, and strict debt risks.
• Since assuming the economic portfolio, He Lifeng has met with key international figures, like U.S. Treasury Secretary Janet Yellen and EU Trade Commissioner Valdis Dombrovskis, signaling a continuation of international economic dialogue.
• He replaces Liu He, who had retired, and unlike Liu, He does not speak English, thus marking a shift in the conduct of negotiations and interactions with western counterparts.
• Analysts anticipate that He Lifeng may also assume leadership of a new higher-ranking economic supervisory body, the Central Financial Work Commission, once it is reinstated, as part of Xi Jinping's plans to exercise tighter control over the financial regulators and central bank.