China’s finance minister has stepped down for personal reasons. The news comes a day after President Hu Jintao denounced a lack of integrity and proper behaviour among finance officials. Speculation on the true reasons for the minister’s departure is rife.
63 year old Jin Renqing had been in the post for 4 years. He will now become deputy director at a think tank – the State Council Development Research centre. This is a vice ministerial rank and a definite demotion.
He will be replaced in finance by the current Director of Taxation, With excess cash continuing to flow through the financial system, there are mounting risks that the Chinese economy might overheat. But a report by the statistics agency says the country should not back off from tighening its belt. China is also toughening its stance on monopolies, making life harder for foreign investors. Its first anti monopolies law, adopted by Parliament, tightens conditions for foreign investors to acquire Chinese businesses.