page_title: Li Keqiang
section_title: Domestic policy
hierarchical_section_title: Li Keqiang / Premiership (2013 to present) / Domestic policy
caption_attribution_description: 中文（繁體）‎: 中國國務院總理李克強舉行中外記者會，答記者問。
context_page_description: Li Keqiang is a Chinese politician who is the current Premier of the State Council of the People's Republic of China. An economist by profession, Li is China's head of government as well as one of the leading figures behind China's Financial and Economic Affairs, Foreign Affairs, National Security and Deepening Reforms. He is also the second-ranked member of the Politburo Standing Committee of the Communist Party of China, the de facto top decision-making body of the country. Li is a major part of the "fifth generation of Chinese leadership" along with General Secretary Xi Jinping. Li was named the world's 12th most powerful person by Forbes in their list of the world's most powerful people in 2015 and 2016.
  Li rose through the ranks through his involvement in the Communist Youth League. From 1998 to 2004, Li served as the Governor of Henan and the province's party secretary. From 2004 to 2007 he served as the Party Secretary of Liaoning, the top political office in the province.
context_section_description: Li has an academic background in economics and is therefore a firm believer in the use of robust economic data to aid in government decision making. He is known to study economic statistics and routinely questions the reliability of the data he works with. Li has been described by international media as the pioneer behind the so-called "Keqiang index", an unconventional economic measurement indicator devised by Li that was said to bypass the often unreliable official GDP numbers and thus serves as a better indicator of economic health and a more useful barometer for decision-making. Instead of gathering data on total economic output alone, Li used three other indicators to keep tabs on the economy while working in Liaoning province. These were, the railway cargo volume, electricity consumption and total loans disbursed by banks.
  When Li initially entered office, China was facing numerous structural problems inherited from the previous administration. Namely, the large abundance of non-performing loans, that many of the giant infrastructure projects the country embarked on since the global financial crisis was overloaded with crushing debt and lower than expected revenues, and the increasingly large wealth gap. Under these circumstances, Li was said to have responded with what became known as "Likonomics", a term coined by economists at the investment bank Barclays Capital. Likonomics consisted of a three-prong approach that included the across-the-board reduction of debt, an end to massive stimulus practices of the Wen Jiabao government, and structural reforms. However, by 2014, global economic pressures and a decrease in demand of Chinese exports led to lower than expected economic growth rates. Year-on-year GDP growth amounted to less than 7.5% for the first time since 1989. Li's government then responded with tax cuts for small businesses, renovation projects of poor urban areas, and another round of rail construction, particularly focused on the country's interior.
  After the announcement of comprehensive reforms at the Third Plenum in 2013, Li became a leading figure of the government's reform implementation efforts. The Third Plenum called for market forces to play a "decisive" role in the allocation of resources, ostensibly looking to decrease government regulation on the free market. In early 2014, Li said that local governments were still ineffective at following the central government's reform directives, and that some governments meddle in affairs they shouldn't be involved in, and some don't pay attention to things they should be doing. Li emphasized that the success of reforms came down to "execution and implementation," and criticized local governments for failing to act in support of reforms.
caption: March 2015, Li attends the Chinese and foreign press conference.
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