The world’s top finance officials meeting last month were trying to commit jointly to reducing debt until Mark Sobel, a mid-level U.S. Treasury official who rarely speaks in public, led the charge to kill the effort.
China filled out Premier Li Keqiang’s economic team, installing sovereign-wealth head Lou Jiwei as finance minister and retaining Zhou Xiaochuan as central bank chief as a once-a-decade power handover concluded.
China’s plans to make its financial system more market-based and expand the yuan’s role as a global currency are incentives to extend the tenure of the nation’s longest-serving central bank governor, analysts said.
Pressure on China to tighten monetary policy and macroeconomic controls is easing as inflation will be “relatively low” this month due to slowing food-price gains, central bank adviser Song Guoqing said.
Chinese President Xi Jinping stressed positive ties with the U.S. in his first meeting with a foreign official since taking the post amid tensions between the world’s two biggest economies over espionage and exchange rates.
China called for higher down payments and interest rates for second-home mortgages in cities with “excessively fast” price gains and ordered stricter enforcement of taxes on sales as authorities step up a three- year campaign to cool the property market.
China’s placement of a North Korean- educated economist and an exemplar of debt-fueled infrastructure on its ruling body may add to challenges for Communist Party leader Xi Jinping as he seeks to deepen the nation’s development.
Chinese Premier Li Keqiang pledged to open the economy to more market forces and strip power from the government to achieve 7.5 percent annual growth through 2020 and spread the benefits of the nation’s expansion.