China keeps central banker in ministerial shake-up

BEIJING (Reuters) - China announced a new team of ministers to steer through policies to spread economic prosperity and combat pollution, but kept in place the central bank governor helping guide the economy in testing times.

Zhou Xiaochuan was reappointed as governor of the People's Bank of China, shrugging off rumors of his demise that spread last year. He will be a key player guiding the world's fourth biggest economy as its balances a ballooning surplus and heady inflation with the downturn that has hit much of the world economy.

The National People's Congress, the largely ceremonial parliament, approved Zhou's nomination with 2,756 votes in favor, 156 against and 30 abstentions.

The Congress also rubber-stamped Zhang Ping as head of the National Development and Reform Commission, the main economic planning agency.

Zhang replaces Ma Kai, who was named as one of five state councilors as well as secretary-general of the State Council, China's cabinet.

Congress named four vice-premiers, cementing top leadership positions for the next five years. The first vice premier is next generation leader Li Keqiang, 52, who may take over from Premier Wen Jiabao in 2013.

Li is expected to be charged with hammering out central government economic policy and defusing bureaucratic infighting that has stalled economic reforms.

The other three vice premiers are Hui Liangyu, Zhang Dejiang and former Beijing mayor Wang Qishan, who is expected to take charge of financial affairs.

Vice-premiers outrank state councilors, who in turn outrank cabinet ministers in the Chinese government hierarchy.