Ex-premier Li Keqiang, China’s top economic official for a decade, dies aged 68

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Ex-Premier Li Keqiang, China’s Top Economic Official For A Decade, Dies Aged 68
Then-Chinese premier Li Keqiang delivers his state of the nation address during the opening session of China’s National People’s Congress at the Great Hall of the People in Beijing on March 5 2023, © Copyright 2020 The Associated Press. All rights reserved
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By Emily Wang Fujiyama and Kanis Leung, Associated Press

Former premier Li Keqiang, China’s top economic official for a decade, has died of a heart attack aged 68.

Mr Li was China’s number two leader from 2013-23 and an advocate for private business but was left with little authority after President Xi Jinping made himself the most powerful Chinese leader in decades and tightened control over the economy and society.

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CCTV said Mr Li had been resting in Shanghai recently and had a heart attack on Thursday. He died at 12.10am local time on Friday.

Mr Li, an English-speaking economist, was considered a contender to succeed then-Communist Party leader Hu Jintao in 2013 but was passed over in favour of Mr Xi.


Newly elected Chinese premier Li Qiang, left, walks past as Chinese President Xi Jinping, centre, shakes hands with former premier Li Keqiang during a session of China’s National People’s Congress (NPC) at the Great Hall of the People in Beijing on March 11 2023
Newly elected Chinese premier Li Qiang, left, walks past as Chinese President Xi Jinping, centre, shakes hands with former premier Li Keqiang during a session of China’s National People’s Congress at the Great Hall of the People in Beijing on March 11 2023 (Mark Schiefelbein/AP)

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Reversing the Hu era’s consensus-oriented leadership, Mr Xi centralised powers in his own hands, leaving Mr Li and others on the party’s ruling seven-member Standing Committee with little influence.

As the top economic official, Mr Li promised to improve conditions for entrepreneurs who generate jobs and wealth.

But the ruling party under Mr Xi increased the dominance of state industry and tightened control over tech and other industries.

Foreign companies said they felt unwelcome after Mr Xi and other leaders called for economic self-reliance, expanded an anti-spying law and raided offices of consulting firms.

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Mr Li was dropped from the Standing Committee at a party congress in October 2022 despite being two years below the informal retirement age of 70.

The same day, Mr Xi awarded himself a third five-year term as party leader, discarding a tradition under which his predecessors stepped down after 10 years.

Mr Xi filled the top party ranks with loyalists, ending the era of consensus leadership and possibly making himself leader for life.


China’s then-premier Li Keqiang speaks during the Asean-China Summit (Association of Southeast Asian Nations) in Phnom Penh, Cambodia, in November 2022
China’s then-premier Li Keqiang speaks during the Asean-China Summit in Phnom Penh, Cambodia, in November 2022 (Heng Sinith/AP)

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The number two slot was filled by Li Qiang, the party secretary for Shanghai, who lacked Li Keqiang’s national-level experience and later told reporters that his job was to do whatever Mr Xi decided.

Li Keqiang, a former vice premier, took office in 2013 as the ruling party faced growing warnings the construction and export booms that propelled the previous decade’s double-digit growth were running out of steam.

Government advisers argued Beijing had to promote growth based on domestic consumption and service industries.

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That would require opening more state-dominated industries and forcing state banks to lend more to entrepreneurs.

Mr Li’s predecessor, Wen Jiabao, apologised at a March 2012 news conference for not moving fast enough.

In a 2010 speech, Mr Li acknowledged challenges including too much reliance on investment to drive economic growth, weak consumer spending and a wealth gap between prosperous eastern cities and the poor countryside, home to 800 million people.

Mr Li was seen as a possible candidate to revive then-supreme leader Deng Xiaoping’s market-oriented reforms of the 1980s that started China’s boom.

But he was known for an easygoing style, not the hard-driving impatience of Zhu Rongji, the premier in 1998-2003 who ignited the construction and export booms by forcing painful reforms that cut millions of jobs from state industry.


Then-Chinese premier Li Keqiang attends a signing ceremony with then-Australian prime minister Malcolm Turnbull at the Great Hall of the People in Beijing, China, on April 14 2016
Then-Chinese premier Li Keqiang attends a signing ceremony with then-Australian prime minister Malcolm Turnbull at the Great Hall of the People in Beijing on April 14 2016 (Parker Song/Pool Photo via AP)

Mr Li was believed to have supported the China 2030 report released by the World Bank and a cabinet research body in 2012 that called for dramatic changes to reduce the dominance of state industry and rely more on market forces.

The Unirule Institute, an independent think tank in Beijing, said state industry was so inefficient that its return on equity – a broad measure of profitability – was negative 6%.

Unirule was later shut down by Mr Xi as part of a campaign to tighten control over information.

In his first annual policy address, Mr Li in 2014 was praised for promising to pursue market-oriented reform, cut government waste, clean up air pollution and root out pervasive corruption that was undermining public faith in the ruling party.

Mr Xi took away Mr Li’s decision-making powers on economic matters by appointing himself to head a party commission overseeing reform.

Mr Xi’s government pursued the anti-graft drive, imprisoning hundreds of officials including former Standing Committee member Zhou Yongkang.

But party leaders were ambivalent about the economy.

They failed to follow through on a promised list of dozens of market-oriented changes.


Then-Chinese premier Li Keqiang speaks during a press conference after the closing session of the National People’s Congress in Beijing’s Great Hall of the People on March 15 2019
Then-Chinese premier Li Keqiang speaks during a press conference after the closing session of the National People’s Congress in Beijing’s Great Hall of the People on March 15 2019 (Ng Han Guan/AP)

They increased the dominance of state-owned banks and energy and other companies.

Mr Xi’s government opened some industries including electric car manufacturing to private and foreign competition.

But it built up state-owned “national champions” and encouraged Chinese companies to use domestic suppliers instead of imports.

Borrowing by companies, households and local governments increased, pushing up debt that economists warned was already dangerously high.

Beijing finally tightened controls in 2020 on debt in real estate, one of China’s biggest industries.

That triggered a collapse in economic growth, which fell to 3% in 2022, the second-lowest in three decades.

Mr Li showed his political skills but little zeal for reform as governor and later party secretary of populous Henan province in central China in 1998-2004.


Then-Chinese cice premier Li Keqiang, centre, speaks at a symposium attended by representatives of HIV/Aids related non-governmental organisations and international organisations in Beijing, in November 2012
Then-Chinese vice premier Li Keqiang, centre, speaks at a symposium attended by representatives of HIV/Aids-related non-governmental organisations and international organisations in Beijing in November 2012 (Ma Zhancheng/Xinhua via AP)

Mr Li earned the nickname Three Fires Li and a reputation for bad luck after three fatal fires struck Henan while he was there.

A Christmas Day blaze at a nightclub in 2000 killed 309 people.

Other officials were punished but Mr Li emerged unscathed.

Meanwhile, provincial leaders were trying to suppress information about the spread of Aids by a blood-buying industry in Henan.

Mr Li’s reputation for bad luck held as China suffered a series of deadly disasters during his term.

Days after he took office, a landslide on March 29 2013 killed at least 66 miners at a gold mine in Tibet and left 17 others missing and presumed dead.

In the eastern port of Tianjin, a warehouse holding chemicals exploded on August 12 2015, killing at least 116 people.

A China Eastern Airlines jetliner plunged into the ground on March 22 2022, killing all 132 people aboard.


Then-Chinese premier Li Keqiang, centre, speaks to medical workers at Wuhan Jinyintan Hospital in Wuhan in central China’s Hubei province on January 27 2020
Then-Chinese premier Li Keqiang, centre, speaks to medical workers at Wuhan Jinyintan Hospital in Wuhan in central China’s Hubei province on January 27 2020 (Li Tao/Xinhua via AP)

Authorities have yet to announce a possible cause.

Mr Li oversaw China’s response to Covid-19, the first cases of which were detected in the central city of Wuhan.

Then-unprecedented controls were imposed, shutting down most international travel for three years and access to major cities for weeks at a time.

In one of his last major official acts, Mr Li led a cabinet meeting that announced on November 11 2022 that anti-virus controls would be relaxed to reduce disruption after the economy shrank by 2.6% in the second quarter of the year.

Two weeks later, the government announced most travel and business restrictions would end the following month.

Mr Li was born on July 1 1955 in the eastern province of Anhui and by 1976 was ruling party secretary of a commune there.


Then-Chinese premier Li Keqiang, front left, wearing a face mask, visits the tunnel of subway line 5 in Zhengzhou city in central China’s Henan province on August 18 2021
Then-Chinese premier Li Keqiang, front left, wearing a face mask, visits the tunnel of subway line 5 in Zhengzhou city in central China’s Henan province on August 18 2021 (Rao Aimin/Xinhua via AP)

Studying law at Peking University, he was the campus secretary of the ruling party’s Communist Youth League, an organisation that launched the political careers of former party leaders Hu Jintao and Hu Yaobang.

He was a member of the League’s Standing Committee, a sign he was seen as future leadership material.

After serving in a series of party posts, Mr Li received his PhD in economics in 1994 from Peking University.

Following Henan, Mr Li served as party secretary for Liaoning province in the north-east as part of a rotation through provincial posts and at ministries in Beijing that was meant to prepare leaders.

He joined the party Central Committee in 2007.

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