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On Saturday, Chinese President Xi Jinping proposed Li Qiang for the position of premier, which entails overseeing the second-largest economy in the world, at the current annual session of China’s rubber-stamp parliament.
Li Keqiang, who is stepping down during the National People’s Congress session that ends on Monday after completing two five-year terms, will be succeeded by Li, the former Communist Party chief of Shanghai, the largest city in China.
When Xi was the provincial party secretary of eastern China’s Zhejiang province from 2004 to 2007, Li Qiang, 63, was Xi’s head of staff.
The incoming Li, who is widely regarded as pragmatic and pro-business, will have a difficult time shoring up China’s uneven economic rebound after three years of COVID-19 curbs, low consumer and private sector confidence, and external headwinds.
He will assume office in the midst of escalating Western tensions, including American efforts to deny China access to crucial technologies, and as many multinational corporations diversify their supply networks to reduce their exposure to China in light of political risks and the COVID era’s disruptions.
China’s economy expanded by only 3% last year, and Beijing set a modest growth target of around 5% for 2023, its lowest aim in almost three decades, on the first day of parliament.
According to Christopher Beddor, deputy China research head at Gavekal Dragonomics, Li’s top priority this year will be exceeding that goal without causing serious inflation or adding to debt.
Li may be forced into action by significant obstacles like a collapse in exports or lingering weakness in the real estate sector, according to Beddor, even though China hasn’t indicated plans to release stimulus to kick-start growth.
In order to contain COVID, the leadership has already consented to two years of incredibly slow economic development. They won’t tolerate another since containment is no longer an option, he added.
Li will make his eagerly anticipated foreign debut on Monday during the premier’s customary question-and-answer session with the media following the conclusion of the parliamentary session.
When he was chosen to serve as the second member of the Politburo Standing Committee during the once every five years Communist Party Congress, he placed himself on the path to becoming premier.
As a generation of more reform-minded government officials retires and Xi further consolidates power after being voted president for an unprecedented third term on Friday, he is installing a slate of loyalists in key roles amid the largest government reshuffle in a decade.
