REUTERS/Aly Song
Governor of the People's Bank of China Zhou Xiaochuan yawns.
Over the last few months there has been a distinct shift in Chinese policy. Xi has signaled that the country will no longer use economic stimulus - like infrastructural projects - and low interest rates to grow the economy. Some analysts estimate that the country's debt-to-GDP ratio to be at around 250%. The government understands this is not sustainable.
However reform will be painful, and the economy is already showing signs of slow down. Earlier this month the country released a slew of dismal economic data, including the lowest industrial production since 2008. China may miss its 2014 GDP growth target of 7.5% for the firs time in years, and Xi signaling that he may be okay with that.
According to the WSJ the word is that Zhou may be replaced with Guo Shuqing, an ex-banker and securities regulator. Guo has been attending important meetings recently.
Replacing Zhou, however, sends a completely different signal. He's a reformist who has tried to lay down the law on lifting government controls of the economy. He's also well-known entity on the international scene and represented China at meetings like the G20.
"Everybody seems to be interested in talking about reform, but they really fear what they are professing to love," said Zhang Xiaohui, head of the PBOC's monetary-policy department, in a May 2014 meeting, according to a transcript of her remarks viewed by the Journal.