China's ex-Finance Minister Lou Jiwei appears at forum, refuting arrest rumors

Former Chinese Finance Minister Lou Jiwei appeared at a forum in Beijing, seemingly to dispel recent rumors of his arrest. Lou, known for his direct commentary, spoke at the Global Wealth Management Forum on the topic of organizing and revitalizing state-owned assets.

Lou stated that revitalizing state-owned assets is both an urgent priority and a long-term strategic mission. He highlighted increasing fiscal pressures in China, with tax revenue growth significantly lagging behind nominal GDP. This, combined with a sharp decline in land fiscal revenue and rising interest payments from local government debt resolution and bond issuance, creates significant financial challenges.

"Considering multiple real constraints, the revitalization of existing state-owned assets is not a short-term emergency measure, but a key task that needs to be advanced in a normalized, long-term manner," Lou said. His appearance comes after overseas commentator Cai Shenkun posted on social media platform X on July 31, claiming Lou had been arrested.

Lou, 75, is a key figure among reformists within the system. His career includes participation in major economic reforms such as the 1994 tax-sharing reform, foreign exchange system reform, and the 2014 fiscal and tax system reform. He served as finance minister from 2013 to 2016 and later chaired the National Council for Social Security Fund before retiring in 2023. He has previously voiced concerns about China falling into the "middle-income trap" and criticized the "Made in China 2025" strategy.

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Considering multiple real constraints, the revitalization of existing state-owned assets is not a short-term emergency measure, but a key task that needs to be advanced in a normalized, long-term manner.