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Lan Fo’an, a former provincial governor and veteran official, is expected to be appointed China’s new finance minister soon, as a reshuffle of senior officials continues, people familiar with the matter said.
Beijing said on Thursday that Lan, who until this week was party secretary and governor of Shanxi province, would become secretary of the leading party group of the Ministry of Finance.
Until now, this position has been held by Finance Minister Liu Kun, who is expected to leave the Ministry of Finance soon.
Lan, 61,’s promotion appears to mark the end of President Xi Jinping’s overhaul of his economic policy team this year. Xi Jinping began an unprecedented third term in March as leader of the world’s second-largest economy.
Other top economic decision-making bodies, led by the People’s Bank of China and the National Development and Reform Commission, have also undergone leadership changes this year.
Wider changes in the Chinese government this year include the dismissal of Foreign Minister Qin Gang and what U.S. officials consider to be the removal of Defense Minister Li Shangbo.
The moves reinforce the perception that power under Xi Jinping is becoming more concentrated and less transparent.
Lan, who has held provincial governorships in three provinces, faces a difficult task.
The Treasury Department is under pressure to revive China’s economy, which has been burdened by soaring local government debt and massive real estate defaults. The impact of the easing of Covid-19 restrictions on the recovery in economic activity has also been less than expected.
People close to the finance ministry said Lan is qualified for the finance minister’s post but has little room to design policy measures on his own because decision-making has been centralized.
“All he can do is listen to his boss’s orders and carry them out,” said a person close to the department.
Lan, a native of southern Guangdong province, began his career in 1985 as a clerk at the Ministry of Finance. He subsequently worked in Guangdong’s finance and auditing departments for more than twenty years.
People close to the Finance Ministry said Lan was chosen in part because of his relationship with Liu, who worked together at the Guangdong Provincial Finance Ministry in the 2000s and played a key role in selecting his successor.
“Lan is the kind of candidate who not only understands what he is doing but also has the trust of the top leadership,” said a person close to the Treasury Department. “Now you need both qualities to advance.”
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