Markets Print edition: 2017-02-25

China names new planning chief, commerce minister

Published February 25, 2017 Updated February 25, 2017 12:00am

China has appointed a new head for its top economic planning agency and a new commerce minister as part of a reshuffle ahead of a crucial Communist Party meeting later this year. He Lifeng, a vice chairman of the National Development and Reform Commission (NDRC), has been tapped to lead the agency, state media Xinhua said Friday on its official microblog, citing a decision by the standing committee of the National People's Congress, replacing Xu Shaoshi, who has reached retirement age.
Zhong Shan, currently a vice commerce minister, has been named new head of the ministry, the Ministry of Commerce said on its website, taking over from Gao Hucheng.
Reuters had earlier reported China will appoint He and Zhong as the new chiefs of the nation's two top economic policymakers, citing sources with direct knowledge of the matter.
Zhong was previously China's international trade representative, responsible for trade negotiations, and held official positions in Zhejiang province when Chinese President Xi Jinping served as governor and party boss of the province from 2002-2007.
Beijing is struggling to cope with weak global demand and faces risks from growing US trade protectionism as the Trump administration shows an aversion to globalisation, which has benefited China hugely.
In an interview with Reuters, President Donald Trump declared China the "grand champions" of currency manipulation on Thursday, just hours after his new treasury secretary pledged a more methodical approach to analysing Beijing's foreign exchange practices.
The NDRC is tasked with overseeing the Chinese economy, regulating prices and approving major infrastructure projects.
The once-powerful NDRC was dubbed a "super-ministry" when China had a centrally planned economy, but has seen its influence erode as Beijing pushes for market-based reforms and deregulation to let market forces play a bigger role.
Prior to joining NDRC, He worked for other agencies in China's northern city of Tianjin and south-eastern Fujian province.
He, 62, is expected to push supply-side reforms and spearhead a drive to cut excess capacity in the steel and coal sectors.
Both Xu and Gao have reached the mandatory retirement age of 65 for a Chinese cabinet minister.