Update | Why Yi Gang was the obvious choice to become governor of the People’s Bank of China
With his overseas education and work experience, Yi has all the credentials to push Beijing’s economic agenda on the world stage
Despite rumours that some serious heavyweights were in the running for the top job at the People’s Bank of China – including newly elected Vice-Premier Liu He – with the benefit of hindsight, the appointment of Yi Gang was never really in doubt.
Not only had he served a 10-year apprenticeship as deputy governor under Zhou Xiaochuan – whose retirement after 15 years was confirmed on Monday – but he had also spent a decade studying and working in financial fields overseas.
As Beijing seeks to raise its profile on the global stage, while also maintaining policy stability and tackling financial risk at home, what better candidate was there?
Deng Haiqing, an economist with Chinese brokerage house JZ Securities said in a note that the appointment of 60-year-old Li sent a strong message that China not only supported globalisation but also “aspired to have a big voice in global economic governance”.
As central bank governor in the world’s second-largest economy, Yi will also have responsibility for reshaping China’s financial landscape as Beijing’s moves away from growth at any price to a more sustainable economic model.
