China Resolves to Chart Independent Financial Path, Subjects Central Bank to Stricter Party Control

China has hardened its resolve to chart a different financial path after learning lessons from the 2008 financial crisis and subsequent trade war with the US.

The People's Bank of China (PBOC) will fall under stricter Communist Party control to serve as an engine for China's economic prosperity.

The PBOC has focused on fewer but more vital tasks like serving the real economy, controlling financial risks, and countering potential Western sanctions.

China has stepped up internationalization of the yuan, built alternative financial infrastructure, and made contingency plans to defend against a possible "financial war."

Under its new mandate, the PBOC is expected to take a stronger pro-growth stance and play a gatekeeping role in China's financial security.