Li Keqiang on Economic Policy

Li Keqiang, as Premier, consistently favored market-oriented policies, contrasting at times with the more state-centric strategies of the Party leadership. Empirical analysis of his speeches revealed a distinct preference for market mechanisms, lean government, and promoting small start-ups, which was notably visible during his annual “Mass innovation week” initiatives. He championed the platform dubbed “Likonomics,” which focused on cutting red tape and taxes to stimulate the economy, even while steering the nation through crises like the US-China trade war and the COVID-19 pandemic.

His market-oriented rhetoric, however, experienced a trend of convergence toward the general secretary’s state-centric preferences, particularly in the latter half of his tenure, suggesting an erosion of his policy influence over time. This perceived policy divergence between the two leaders was reportedly associated with increased political uncertainty, which negatively impacted firm-level investment, especially within state-owned enterprises. While his market-friendly stances have not been carried forward by his successor, Li Keqiang is remembered for consistently expressing a commitment to openness to the global economy.