In a surprise move, China removed its pro-reform finance minister Lou Jiwei on Monday. The surprise decision comes at a critical time when Beijing is desperately trying to overcome a prolonged slowdown in its economy.

Chinese state media Xinhua reported that Finance Minister Lou will be now replaced by Xiao Jie. Xiao is the former chief of China's taxation bureau and was recently appointed the deputy secretary-general of the State Council.

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Lou, who is 65 years old, was nearing the retirement age.  His removal has nevertheless surprised several experts - particularly because there was no signal or indication from the Chinese government about his sudden dismissal.

The sharp reaction over Lou's dismissal is not surprising, considering that he was one of the staunch supporters of economic reforms and was equally vocal about them. His efforts to bring discipline in China's financial system are considered as praiseworthy by many economists.

Lou's sudden departure has many experts worrying about the fate of China's economic reforms, especially due to consistent opposition within the Chinese government against the implementation of reforms.

Some political experts have suggested that Monday's decision clearly indicates that Chinese President Xi Jinping is trying to install trusted officials in key government positions ahead of the party congress late next year.

In another high-profile move, Minister of State Security Geng Huichang was also replaced on Monday. He will be succeeded by Chen Wenqing, who was appointed as party secretary of the ministry last year.

Geng's removal did not raise any eyebrows or drew sharp reactions, as his departure was expected.  

TagsLou Jiwei, china, China Finance Minister, Chinese Economy