BEIJING, July 25, 2023 (BSS/AFP) - China replaced its central bank chief on 
Tuesday, state media said, as the world's second-largest economy struggles to 
revive flagging growth.

Economist Pan Gongsheng will take the place of outgoing central bank governor 
Yi Gang, the official Xinhua News Agency said.

Yi has headed the People's Bank of China (PBOC) since 2018 and has reached 
retirement age.

The decision, made by Chinese legislators at a meeting on Tuesday, comes 
after Pan was appointed the PBOC's Communist Party secretary on July 1. 

Pan previously headed China's foreign exchange regulator, a position he had 
held since 2016, when China faced major capital flight.

The 60-year-old has also served as one of the central bank's vice-governors 
since 2012.

Pan, who attended top universities Cambridge in the United Kingdom and 
Harvard in the United States, is reputed to be deeply experienced in Chinese 
banking and politics, having also worked at two major state-owned banks.

"All these roles could have ended Pan's career if mishandled," analysts at 
Beijing-based consultancy Trivium wrote in a note.

"Instead, he built a reputation for being a politically savvy problem 
solver," the analysts said.

Neil Thomas, a China specialist at the Asia Society, said: "Pan Gongsheng is 
a financial technocrat, not a Xi loyalist."

"This suggests Xi is more concerned about China's economy than before the 
20th Party Congress," Thomas tweeted, referring to a key conclave last year 
where Beijing's top leadership confirmed a third term in power for Xi.

The central bank has cut several interest rates in recent weeks in an effort 
to reinvigorate the economy, but a run of dismal economic data over recent 
months has ramped up calls for officials to unveil stronger support measures.

China said this month its economy grew 6.3 percent in the second quarter, 
much weaker than the 7.1 percent predicted in an AFP survey of analysts.

The disappointing result came despite a very low base of comparison with last 
year, when China was hit by a series of Covid lockdowns in major cities.

In quarter-on-quarter terms -- considered a more realistic basis for 
comparison -- growth came in at 0.8 percent, well down from the 2.2 percent 
seen in January-March, the first full period after the removal of zero-Covid 
restrictions.

Youth unemployment jumped to a record 21.3 percent in June, up from 20.8 
percent in May.

China's Politburo said on Monday the economy was facing "new difficulties and 
challenges".