Li Qiang Faces Acid Test In Boosting China's Economy

China’s new premier has tried to reassure the private sector in his debut press conference, as concerns grew about the country’s policy direction with the introduction of a new Cabinet loyal to leader Xi Jinping.

Photo Insert: Li Qiang sought to fire up the private sector, a group that has been scarred by a years-long regulatory crackdown and has grown concerned about Beijing’s increasingly statist approach.

Li Qiang, a long-time aide to Xi, succeeded Li Keqiang as premier. He is tasked with reviving the world’s second-largest economy after three years of Covid restrictions and as US-China tensions worsen, Laura He reported for CNN.

Li Qiang sought to fire up the private sector, a group that has been scarred by a years-long regulatory crackdown and has grown concerned about Beijing’s increasingly statist approach.

“For a period of time last year, there were some incorrect discussions and comments in the society, which made some private entrepreneurs feel worried,” Li said.

“From a new starting point, we will create a market-oriented, legalized and internationalized business environment, treat enterprises of all types of ownership equally, protect the property rights of enterprises and the rights and interests of entrepreneurs.”

The new government will “promote fair competition among various business entities, and support the development and growth of private enterprises,” he added. But Li also sought to temper expectations, admitting that China’s goal of reaching 5% GDP growth this year – its lowest target in decades – was “not an easy task.”

His comments came a day after Beijing made a surprise decision not to retire the incumbent central bank governor in a move applauded by analysts, who said it would “shore up” investor confidence.

Yet, the fact remains that Li Qiang bungled COVID policy in Shanghai and practically has no experience in running a country and its economy.

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