Mr Li was competent and hardworking but was sidelined by his erstwhile political rival Xi Jinping. Read more at straitstimes.com.
As the second highest-ranked official in the country after the President, he was supposed to be in charge of the Chinese economy, the second-largest in the world, and he was, for the first few years of his two five-year terms in office.
Mr Li set about rescuing the economy with his signature Likonomics, a three-prong approach of debt reduction, no more stimulus and structural reforms. He focused his attention on government austerity, a more equitable distribution of income and moving towards a consumption-based economy instead of relying on export-led growth.
But Mr Li also faced internal political obstacles, including in November 2013 when Mr Xi set up the Leading Group on Comprehensively Deepening Reforms and made himself the head of the powerful group.He cut taxes on small and medium-sized enterprises, upgraded infrastructure in penurious urban areas, built more railway lines in the hinterland and fought pollution.
However, Mr Li sparked a debate on income inequality in May 2020, when he said that 600 million people in China earned less than the equivalent of US$140 per month, meaning many Chinese were still finding it difficult to make ends meet. In 2007, ahead of the 17th party congress, a succession stand-off between Mr Xi and Mr Li was resolved after informal backroom straw polls – known in Chinese as “democratic recommendation” – to sound out the party elite during a meeting of the roughly 200-member Central Committee and party elders.
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