Why China’s new economic commission cements Xi Jinping’s grasp on levers of power
Policy-making body institutionalises party’s control over direction of world’s second largest economy
China’s Central Economic and Financial Affairs Commission convened for the first time on Monday with President Xi Jinping as the chair, marking the official start of a new command chain in running the world’s second biggest economy.
The new commission, which plays a similar role to the US National Economic Council, offers a permanent institution for Xi to drive through his economic policies, such as measures to defuse a debt bomb, analysts said.
The meeting, which was also attended by Premier Li Keqiang and Vice Premier Han Zheng, concluded that local governments and companies, especially state-owned enterprises, need to reduce their leverage ratio “as quickly as possible”.
The body has been elevated from a standing group under the Central Leading Group of Economic and Financial Affairs and its new role follows a major revamp of China’s ruling apparatus to give the party a more prominent role in public affairs.
A statement said Xi had stressed the need to implement his policies such as cutting debt, reducing pollution and eradicating poverty.
The official news agency Xinhua paraphrased Xi’s message as: “Financial risk management matters to national security... and the safety of people’s property.”