Dragons’ dilemma

Plans by China’s Communist Party to revive a high-level economic watchdog after two decades signal President Xi Jinping push to increase oversight of the financial sector, analysts say, part of a wider tightening of control by Xi and the party.Xi, who secured a precedent-breaking third leadership term in October, is planning to resurrect the Central Financial Work Commission (CFWC), which will be directly under central party leadership, two people briefed on the matter told Reuters.A decision to revive the commission may be revealed following the annual gathering of the National People’s Congress (NPC), the people said. The NPC, to begin its session on Sunday, is set to confirm a new slate of economic leaders chosen by Xi. The State Council Information Office did not immediately respond to a request for comment.The CFWC was introduced in 1998 during the tenure of Jiang Zemin, building a role for the party within the central bank and financial regulators but without influencing their business, state media reported at the time. It was disbanded in 2003. “If the CFWC is indeed revived, it will hold strong influence over the financial system, including making personnel appointments in key positions,” said Xin Sun, senior lecturer in Chinese and East Asian Business at King’s College London.