Li Qiang becomes China’s premier with a mission to revive the economy

Li Qiang, former head of the Shanghai Communist Party, took office as premier of Shanghai on Saturday. Chinathe number 2 position in the country, with which the close ally of the president Xi Jinping becomes in charge of reactivating an economy battered by three years of restrictions COVID-19.

Considered a pragmatic and pro-business man, Li, 63, faces an uphill task to shore up China’s uneven recovery amid global headwinds and weak consumer and private sector confidence.

Li takes office at a time when tensions are rising with the West over a number of issues, including US moves to block China’s access to key technologies and many global companies diversifying their supply chains. supply to hedge its exposure to China due to political risks and COVID-era disruptions.

The career bureaucrat replaces Li Keqiang, who is retiring after two five-year terms in which his role became increasingly diminished as Xi tightened his grip on power and steered the world’s second-largest economy in a more statist direction.

Li Qiang is the first prime minister since the founding of the People’s Republic who has never held a central government position, meaning he may face a steep learning curve in the first few months in office, according to analysts.

However, Li’s close ties to Xi (Li was Xi’s chief of staff from 2004 to 2007, when Xi was the provincial party secretary in Zhejiang province) will allow him to get things done, according to leadership watchers.

“My reading of the situation is that Li Qiang will have much more leeway and authority within the system.”said Trey McArver, co-founder of consultancy Trivium China.

Source: Reuters