In his first public address since assuming office, China’s new premier Li Qiang attempted to restore confidence in the country’s economy.
“The economy is stabilizing and picking up again,” he said.
The effects of Beijing’s zero-Covid policy on the world’s second-largest economy are still being felt.
Moreover, a declining population and job losses pose obstacles.
In recent years, investors’ confidence has suffered as a result of China’s leader Xi Jinping’s consolidation of power and crackdown on private businesses, ranging from tech companies to the education industry.
To allay these concerns, Mr. Li stated, “During a period last year, there were erroneous beliefs about the development of the private economy that alarmed some business owners… The conditions for the private economy would continue to improve, and there would be more room for it.
“China and the US should and must cooperate,” Mr. Li said.
When China and the United States collaborate, we can accomplish a great deal. No one can benefit from encirclement and oppression.”
Party officials went above and beyond to execute Mr. Xi’s signature policy.Protests overturned it in December.
As premier, he is now responsible for managing China’s economy, and his promotion has astonished many. As he has no experience working in the central government, unlike almost all of his predecessors. Between 2002 and 2007, he worked closely with Mr. Xi in one of China’s most prosperous provinces, Zhejiang.
Running the State Council machinery will require some adjustments, but he likely had some ‘practice’ during zero-Covid since Shanghai, as the largest city in China, had to coordinate closely with State Council agencies and he even took over the Covid leading group for months now,” said Victor Shih, a professor at the University of California San Diego.
“On issues that are important to Xi, there will be little space for a maneuver. However, he [Li] may be more persuasive than Xi.”
Mr. Li did not suggest new economic measures, according to EIU chief economist Yue Su.
This means that Li Qiang has limited control over policy decisions during his first year in office. And the Politburo meeting will continue to be the most important factor in determining China’s policy direction.
She added that investors’ confidence would not return instantaneously due to the absence of “institutional measures” – even if Mr. Li appears to be a “business-friendly premier” with a proven track record in Zhejiang and Shanghai.
Last week’s Two Sessions gave Mr. Xi, the most potent leader since Chairman Mao Zedong, a historic third term. After the two-term limit on presidential terms was removed five years ago, this was also widely anticipated.
“This is my third tenure as president of this great nation. On Monday, Mr. Xi said that people’s trust is his biggest motivation and duty.
“Security is the foundation of development, and stability is a precondition for prosperity.
“We must fully promote the modernization of national defense and the armed forces, and build the people’s armed forces into a Great Wall of Steel”
