Xi Jinping Names China's New Premier, Who Faces Daunting Task Of Restoring Economy Battered By COVID-19

Chinese President Xi Jinping has named one of his close confidants, Li Qiang, as the country’s new premier.

What Happened: On Saturday, Li, the former Communist Party chief of Shanghai, assumed the Chinese government's highest administrative position. He has the challenging task of reviving China’s economy, which has been struggling due to three years of COVID-19 restrictions. As the country's premier, Li is now second only to President Xi. The 63-year-old Li takes office, amid rising tensions with the West over a number of issues, including efforts by the U.S. to deny China access to critical technologies.

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Between 2004 and 2007, Li served as Xi’s head of staff when the latter was the Zhejiang province's provincial party secretary.

He is particularly known for the harsh “zero-COVID” lockdown he imposed in Shanghai last spring. 

Why It’s Important: Leadership watchers speculate that Li may be able to execute his objectives more effectively now because of his close ties to Xi. “My reading of the situation is that Li Qiang will have a lot more leeway and authority within the system,”  Trey McArver, co-founder of consultancy Trivium China, told Reuters.

On Monday, Li will make his debut on the international stage during the premier’s traditional Q&A session with the media.

China’s economy grew by only 3% last year, according to Reuters. In addition, Beijing announced a growth target of 5% for 2023 — its lowest in almost three decades. Li's top priority this year will be reaching that goal without causing significant inflation or debt accumulation, Christopher Beddor, deputy China research head at Gavekal Dragonomics, told the news agency. 

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