Beijing - In the latest governmental restructuring, China announced the appointment of Lan Fo'an as the nation's new Finance Minister during the sixth session of the Standing Committee of the 14th National People's Congress (NPC). This decision followed the removal of Li Shangfu from his position as Defence Minister.

According to the Xinhua news agency, Lan has been designated as the Finance Minister, taking over from Liu Kun, while Yin Hejun has been named as the Minister of Science and Technology. Simultaneously, Li was relieved of his responsibilities as Defence Minister due to his unexplained absence for over two months, and former Foreign Minister Qin Gang was removed from his position as State Councillor.

During this session, Chinese President Xi Jinping signed orders to enact new laws and implement these decisions. Liu Shaoyun was appointed as the head of the military court of the Chinese People's Liberation Army (PLA), succeeding Li.

Lan Fo'an, a 61-year-old official, had been serving as the Communist Party Chief at the Ministry of Finance prior to his recent appointment, following his role as the Party Chief of Shanxi province, as reported by Nikkei Asia. This appointment coincides with China's efforts to rejuvenate its struggling economy through increased fiscal stimulus.

Lan embarked on his career in 1985 within the finance department of Guangdong province, situated in southern China, after graduating from Hubei University of Finance and Economics. His ascent led him to become a vice provincial chief in 2016. In 2021, he transferred to Shanxi and assumed the role of Vice Party Chief before eventually becoming the Party Chief in December 2022.

Lan's predecessor, Liu Kun, had held the position of China's Finance Minister since 2018, but he surpassed the official retirement age of 65 for ministers, and he is set to turn 67 this year.

As the new Finance Minister, Lan's foremost challenge will be to address China's escalating debt crisis. China's economic growth has declined by 4.9 percent, based on the country's trade data, primarily due to subdued global demand, deflationary pressures, and challenges within the property sector. In the previous quarter, there was a growth rate of 6.3 percent.

Earlier in the year, economic growth was boosted as people resumed shopping and dining out following the removal of nearly three years of 'zero-COVID' restrictions in late 2022. However, the post-pandemic recovery has faltered more quickly than expected.

Li Shangfu was relieved of his roles as both State Councillor and Defence Minister on Tuesday. Notably, Li was last publicly seen delivering a speech on August 29 and has not been observed since. Although there is no indication that the disappearance of Li and Qin signifies a shift in China's foreign or defense policies, their unexplained absences have raised questions about the stability of President Xi Jinping's leadership.

Li is believed to be a close confidante of President Xi, and his absence from a meeting with senior Vietnamese defense officials on September 7 and 8 has fueled speculations about his whereabouts.

Previously, the US Ambassador to Japan, Rahm Emanuel, raised questions about whether the Chinese government had placed him under house arrest, pointing out his absence for the past three weeks and the cancellation of his scheduled trip to Vietnam.

In a parallel development, Chinese Foreign Minister Qin Gang, a close aide of the President known for his clever rhetoric, metaphors, and spirited defense of the government, has suddenly disappeared from public view since June 25. He has now lost his remaining position within the Chinese cabinet.