On January 17th, the Secretary of the Chinese Communist Party Social Security Fund was replaced, with 64-year-old Ding Xuedong being removed from his position and replaced by Liu Kun, who is four years older. Ding Xuedong was formerly the chief secretary of the current Vice President of the country, Han Zheng, while Liu Kun is a classmate of Vice Premier He Lifeng, in charge of financial and monetary affairs. Analysts suggest that after the 20th Congress of the Communist Party of China, members of Xi’s camp have been continuously taking key positions in the top echelons. He Lifeng from the Fujian clique is currently making power moves.
According to an announcement on the official website of the National Social Security Fund Council of the Chinese Communist Party, on the afternoon of January 17th, 2025, the authorities announced that Liu Kun would take over as the Secretary of the Social Security Fund Party Group, relieving Ding Xuedong of his duties.
Public records show that Liu Kun, born in December 1956 in Guangdong Province but raised in Yunxiao County, Fujian Province. He has held various positions in Guangdong, including Deputy Secretary-General of the Guangdong Provincial Government Office, Director of the Guangdong Provincial Finance Department, Deputy Governor, Deputy Minister of Finance since 2013, Director of the Budget Committee of the Standing Committee of the National People’s Congress, Secretary of the Finance Ministry, and Minister. He stepped down as Minister of Finance on October 24, 2023, and was replaced by Lan Fo’an, who served as his deputy during Liu Kun’s tenure as Director of the Finance Department in Guangdong.
The current Vice Premier of the Chinese Communist Party, He Lifeng, originally from Guangdong and deeply rooted in Fujian’s political scene, has a close relationship with Xi Jinping, being considered one of Xi’s confidants. Liu Kun and He Lifeng were classmates majoring in finance and finance at Xiamen University’s Economics Department, graduating in 1977 (enrolled in early 1978).
Ding Xuedong, born in February 1960 in Jiangsu Province, has a long history of working in the finance system. He served as Deputy Minister of Finance, Vice Secretary-General of the State Council, and Chairman and CEO of China Investment Corporation. He was also Vice Secretary-General and Executive Vice Secretary-General of the State Council, serving under Executive Vice Premier Han Zheng. Not long after Prime Minister Li Keqiang took office, in July 2023, there was a major reshuffle in the position of Vice Secretary-General of the State Council, where Ding Xuedong was reassigned as Secretary of the Social Security Fund Party Group and Vice Chairman until he was recently relieved of his party duties.
Having worked in the finance system for many years, Ding Xuedong has been rumored to be appointed as Minister of Finance during the 19th and 20th Central Committee sessions, yet these rumors never materialized, and he has gradually been marginalized. Of the six Executive Vice Secretaries-General of the State Council, including Ma Kai, Wang Yang, Zhang Ping, You Quan, and Xiao Jie, the previous five all held positions above the deputy state level, with Ding Xuedong being the only one who missed out on such promotion.
Traditionally, high-ranking officials of the Communist Party of China who transition to the Social Security Fund are considered to have moved to a secondary role. In the government restructuring of March 2018, the Social Security Fund was transferred from the State Council to the management of the Ministry of Finance, serving as a fund investment operation entity with no clear administrative level.
Commentator Li Lin analyses for Dajiyuan, stating that post the 20th Congress of the Chinese Communist Party, members of Xi’s camp have been gradually taking key positions in the top echelons. While the move to the Social Security Fund may signify a move to a secondary role, this department manages a huge social security fund and is involved in substantial investments, making it an area prone to corruption. With He Lifeng overseeing financial matters, appointing his classmate to such a lucrative position is likely a move to both monitor and control the flow of resources, ensuring the benefits stay within their circles. Furthermore, given Han Zheng’s background as part of the Jiang faction, his Chief Secretary is naturally losing power.
He Lifeng is seen as a representative of the Fujian clique within Xi’s camp, with his party members spread throughout the economic sphere in recent years. The National Development and Reform Commission is He Lifeng’s stronghold, and after stepping down as Director, Zheng Zhijie, the new head of the Commission, is He Lifeng’s old associate from his time in Fujian. In September 2023, former Deputy Director of the NDRC, Yang Yinkai, was appointed Deputy Director of the Central Financial Affairs Office, with Yang Yinkai being promoted by He Lifeng during his tenure at the NDRC; the Director of the Central Financial Affairs Office also follows He Lifeng’s lead.
He Lifeng is also said to have a “Xia Da Bang” (“Xiamen University”) clique within government circles. He currently serves as the Director of the Central Financial Office and Secretary of the Central Financial Work Committee, with Wang Jiang, the Deputy Director of the Office and Deputy Secretary-General of the Central Financial Work Committee, being He Lifeng’s fellow alumnus from Xiamen University. On September 27th last year, Shen Danyang, Deputy Secretary of the Hainan Provincial Party Committee, was appointed Director of the State Council Research Office. Shen Danyang, a native of Zhangzhou, Fujian, and a graduate of Xiamen University, is considered by Hong Kong media to be Li Keqiang’s “chief strategist,” with his senior and alumnus, He Lifeng, likely playing a pivotal role in his appointment.