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New China premier Li faces challenge to exert authority
by Staff Writers
Beijing (AFP) March 15, 2013


Li Keqiang named China's new premier
Beijing (AFP) March 15, 2013 - China's parliament installed bureaucrat Li Keqiang as premier Friday, putting him in charge of running the world's second-largest economy in one of the final steps of a landmark power transition.

Li, who is expected to be in office for a decade, faces the challenge of steering the country towards more balanced development, with domestic consumption by a larger middle class playing a greater role.

"I announce that comrade Li Keqiang has been chosen as premier of the People's Republic of China," said Yan Junqi, a vice-chairwoman of the National People's Congress (NPC), China's rubberstamp parliament.

To applause from delegates in the Great Hall of the People in Beijing, Li stood up, bowed and shook hands with Xi Jinping, who was formally appointed as China's new president Thursday, and his predecessor as premier Wen Jiabao.

Li received 2,940 votes out of 2,949 cast, with three votes against and six abstentions. Like Xi's election the day before, the result had never been in doubt.

Li, Xi and other top leaders took charge of the Communist party, where real power lies, four months ago, and their stage-managed selection to the top government posts during this week's NPC formalises their authority.

Xi has more authority to set policy than Li. In the past the premier has been the face of government, making public appearances when disaster strikes and looking to reassure the public.

Both their terms officially last five years, but are normally followed by a second, totalling a decade in office.

Li, a 57-year-old English-speaking career bureaucrat, will oversee a sprawling portfolio of domestic and economic affairs.

He takes charge as China's breakneck growth has steadily slowed and the need looms to rebalance away from investment and exports and towards domestic consumption.

In his position as one of Wen's vice-premiers observers praised him for helping China navigate the global financial crisis and pushing forward efforts to restructure the economy.

But like Wen he may face resistance to change among the provinces and ministries.

Li will run the State Council, or cabinet, along with a number of vice-premiers -- who will be named on Saturday -- and state councillors, and will oversee several dozen ministries and commissions.

The son of a party official in the poor eastern province of Anhui, Li was sent to the countryside to do manual labour as were many youths during the tumultuous 1966-76 Cultural Revolution.

While overseeing central Henan province in the 1990s, he was criticised for dealing poorly with an HIV/AIDS epidemic that resulted from a tainted blood donation scheme, targeting activists and the media rather than officials.

He is expected to hold a rare press conference at the close of the NPC on Sunday.

Visible reaction to his election on China's heavily-censored Twitter-like microblogs was generally positive, if limited.

One person took heart in Li having a doctorate in economics.

"Now we can look forward to how (he) will change our country's development model and formulate a national development strategy from a global perspective," wrote one poster under the name Han Wei.

Zhou Qiang, a former Communist party secretary of Hunan province who is seen as an associate of ex-leader Hu Jintao, was named president of China's supreme court.

Legal specialists said Zhou could be an improvement over his predecessor, Wang Shengjun, a career official with no legal experience who said interests of the ruling Communist party came ahead of the constitution and the law.

China's new premier Li Keqiang has risen from relatively humble roots to take charge of running the government of the world's second-largest economy, but could struggle to enforce his will.

A career bureaucrat who speaks fluent English, Li, 57, has a more youthful bearing than his stiff party peers, and has voiced support for the kind of economic reforms many experts say China sorely needs for continued growth.

Like his predecessor Wen Jiabao, Li's real power comes from his position as number two in China's ruling Communist Party, where he is seen as having ties to a more populist faction associated with former President Hu Jintao.

But Li's shortage of allies on the party's top decision-making body, the Politburo Standing Committee, leaves him lacking "political heft", said Patrick Chovanec, a China analyst and chief strategist at Silvercrest Asset Management in New York.

In order to exert influence, Li will need to secure the support of new president Xi Jinping, who has more personal allies and ties to retired officials as the "princeling" son of one of China's most famous generals, he added.

Li is expected to be in office for a decade, and will seek to wean the country towards more balanced development, with domestic consumption by a larger middle class playing a greater role.

He showed liberal tendencies in his youth, but has toed the party line for decades, and his reputation was damaged by his handling of an HIV/AIDS epidemic stemming from a tainted blood donation programme while party boss in Henan province.

Local authorities responded with a clampdown on activists and the media rather than assigning responsibility to the officials involved, and at the national level a stream of health scandals have also happened on his watch.

"One concern with Li is that he has been dogged in the past with... not personal scandals, but policy embarrassments, particularly in Henan," Chanovec said.

"The perception of him is he is not necessarily seen as the most effective policy-maker out there."

Li, the son of a minor party official in eastern China's poor Anhui province, was sent to the countryside to work as a manual labourer during China's tumultuous Cultural Revolution.

He went on to gain a law degree from Peking University, where classmates say he embraced Western and liberal political theory, translating a book on the law by a British judge.

But he has been more orthodox since joining the ranks of officialdom in the mid-80s, working as a bureaucrat while his former classmates protested in Tiananmen Square in 1989.

"Li Keqiang has seriously disappointed the democrats and liberal intellectuals who knew him at Peking University in the 1980s, said Jean-Philippe Beja, of France's National Centre for Scientific Research.

Li rose to become the party's top official in Henan, and Liaoning province in the northeast, both of which saw economic growth, before he was promoted to become a deputy to Wen.

As one of China's key decision-makers on the economy, Li has been praised for helping to steer the country through the global financial crisis relatively unscathed.

One of his top priorities will be to maintain China's rapid economic growth, which is currently export-led and under pressure because of weakened demand for manufactured goods in Europe and the United States.

Since becoming the Communist Party's number-two last year, Li's biggest move has been a government restructuring announced last week, which saw the abolition of China's powerful and often corrupt railways ministry.

Public anger over wealth gained through graft is a key concern for China's authorities, who are anxious to avoid social unrest.

But analysts say the scale of the restructuring achieved so far point to Li's challenges ahead.

"We have seen minimal cosmetic changes, he was not able to pull off a major restructuring," said Willy Lam from the Chinese University of Hong Kong.

Some fear parallels between Li and his predecessor Wen, who struggled to force through policies as he battled with factions in the upper reaches of the party, and officialdom in the provinces and ministries.

Wen cultivated an image as the liberal face of the Communist Party, a standard bearer for the poor who voiced qualified support for political reform. But such changes stagnated under his watch, while China's wealth gap grew.

The party has long held the view that it must maintain control over politics, while promoting economic growth as the key to solving China's problems.

There was "no indication" that Li or Xi "are any different from the current leaders in this respect", said Barry Sautman, associate professor of social science at the Hong Kong University of Science and Technology.

"There is nothing they have done in the past to suggest they might do something different from what has been done over the course of the last 30 years or so."

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Beijing (AFP) March 14, 2013
China's parliament named Xi Jinping as president Thursday, four months after he took charge of the Communist Party with pledges of reform that have raised hopes but so far yielded little change. About 3,000 delegates lined up to cast their votes in Beijing's cavernous Great Hall of the People, dropping red papers into red ballot boxes in front of giant red flags, but the outcome was never in ... read more


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