President Xi Jinping has ousted the high-profile, reformist finance minster, Lou Jiwei, as he looks to put loyalists in key positions. Jinping still faces areas of political resistance and wants to consolidate his power further, however there are concerns he is increasingly focusing on hitting growth targets and suppressing dissent, rather than tackling more urgent issues, such as restructuring the economy. “ Lou Jiwei’s abrupt ouster sends a strong signal that any prospects of even limited economic reforms are falling prey to President Xi’s focus on consolidating his power,” said Professor Eswar Prasad at Cornell University. The Chinese government announced plans for an ambitious reform program last year, including sweeping changes to state-owned enterprises (SOEs), which have been criticized by Western governments over their role in driving up prices and stifling competition.
President Xi Jinping has ousted the high-profile, reformist finance minster, Lou Jiwei, as he looks to put loyalists in key positions. Jinping still faces areas of political resistance and wants to consolidate his power further, however there are concerns he is increasingly focusing on hitting growth targets and suppressing dissent, rather than tackling more urgent issues, such as restructuring the economy. “Lou Jiwei’s abrupt ouster sends a strong signal that any prospects of even limited economic reforms are falling prey to President Xi’s focus on consolidating his power,” said Professor Eswar Prasad at Cornell University. This latest move follows the rare intervention in Hong Kong politics and a strategy to boost coal power, despite the pledge to cut China's air pollution.