[lbo-talk] China Removes Ministers before Congress

Yoshie Furuhashi critical.montages at gmail.com
Sat Sep 1 23:27:07 PDT 2007


<http://www.ft.com/cms/s/0/c301ce14-56d3-11dc-9a3a-0000779fd2ac.html> China removes ministers before congress

By Richard McGregor in Beijing

Published: August 30 2007 09:37 | Last updated: August 30 2007 18:13

China has removed five ministers as part of an accelerated clean-out of top government ranks by Hu Jintao, the president, ahead of the five-yearly Communist party congress in Beijing in October.

The government announced on Thursday that the ministers for state security, supervision and personnel, which all perform functions integral to the party's control over the government and officials, would be replaced.

Xu Yongyue, who stepped down as minister of state security, China's secret police, has been in the position for almost 10 years. He has been replaced by one of his deputies.

The government also confirmed the replacement of Jin Renqing, the finance minister, who was said to be stepping down for "personal reasons".

The reasons for Mr Jin's departure have been the subject of widespread speculation in the Beijing and Hong Kong media, ranging from suggestions he had shared a mistress with a disgraced official to complaints about his handling of construction bonds.

However, the government's confirmation that Mr Jin would be moved to a government think-tank while retaining his ministerial rank suggests his misbehaviour is not yet considered to be too serious.

His departure does not have immediate or far-reaching policy implications.

Ministers are usually reshuffled in the new year during the annual session of the National People's Congress, but Mr Hu has been forcing early retirements throughout 2007.

Mr Hu appears determined to ensure he has a fresh administration on hand after the October congress, when both he and Wen Jiabao, the premier, will be beginning a second five-year term in charge of the country.

Mr Hu has been gradually replacing senior provincial and city leaders over the past three years to put in people he knows and trusts, while easing out loyalists who prospered under Jiang Zemin, his predecessor.

The ministerial clean-out suggests that Mr Hu will also try to force substantial change at the congress on the make-up of the leadership's inner circle, the Politburo Standing Committee.

The most radical scenarios circulating in Beijing see Mr Hu replacing all nine members of the Standing Committee, apart from Mr Wen and himself.

The key issue being watched by financial institutions with investments in China is who replaces the late Huang Ju as vice-premier in charge of banking and financial issues.

Zhou Xiaochuan, the central bank governor, and Chen Yuan, the head of the China Development Bank, have both had their names put forward as candidates.

The fifth minister replaced on Thursday was in charge of the State Commission of Science, Technology and Industry for National Defence.

-- Yoshie



More information about the lbo-talk mailing list