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Κυριακή, 22 Φεβρουαρίου, 2026

China’s State Council headed for rapid decline as Xi sidelines Li Keqiang

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China’s State Council is headed for a rapid decline in its powers while Chinese political machinery seems to be ever more guided by Xi Jinping, China’s President and General Secretary of the Communist Party loyalists and sycophants after he sidelined number two leader Li Keqiang, reported Singapore Post. Li Keqiang, the former premier of the People’s Republic of China for ten years would be remembered for promoting private economy and foreign investment, while Xi Jinping’s main focus has been state ownership.

Once seen as a potential top leader, Li was deliberately kept out of the limelight for years so as not to outshine Jinping. At the same time, Xi accumulated increasingly more powers. Many say Li Keqiang entered the Communist Party with a noble ambition to contribute towards his country but was stifled by its rigid red-tapism. His exit has put a question mark on the future of the country’s private sector as well as the wider economic reforms that he was championing, reported Singapore Post.

Experts believe that Li Keqiang might be the last premier of his type, whose economics-focused approach towards governance contrasted with Xi Jinping’s ideological tone and authoritarian tendencies. Li had already exited the ruling Communist Party’s all-powerful Politburo Standing Committee last October, even though he was yet to reach retirement age, reported Singapore Post.

“Heaven is looking at what humans are doing. The firmament his eyes.” This is what Li had to say while bidding farewell to 800 or so senior government officials. Many interpreted his remarks as digs at Xi. The controversial clip went viral on the internet but was not aired by the State-run China Central Television.

Li’s words signalled a deep sense of frustration. Analysts rued that the quick-witted, outspoken, and rousing intellectual delivered a flat, tepid farewell speech, reported Singapore Post. Although Li and Xi never disagreed publicly, it was evident that the two were not in a close partnership. In fact, as per analysts, a decade-long “north-south war” played out in Beijing’s Zhongnanhai quarters, which house offices of China’s top officials. The south courtyard is the stronghold of the Jinping-led Communist Party, while the north courtyard is home to the State Council, China’s government formerly led by Li.

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From 2012 onwards, the south courtyard started to gain the upper hand. In 2016, People’s Daily, the Communist Party’s mouthpiece, published an article criticising “Likonomics”, the economic stimulus measures led by Li Keqiang, reported Singapore Post. Then in 2018, many of the State Council powers were shifted to Communist Party institutions. During this time, Xi Jinping appeared to have favoured economic adviser Liu He and head of the legislature Li Zhanshu over Li Keqiang, leaving the economist with hardly any influence.

Li Keqiang’s inability to stop Xi Jinping in this regard is considered by many as one of his main faults. Experts believe it was possible for Li Keqiang to stop Xi Jinping from “subverting” the spirit of the “reform and opening” policy launched in 1978, but he showed little courage, reported Singapore Post. Li’s replacement, Li Qiang, is considered a Xi crony, best known for his ruthless imposition of months-long Covid lockdown in Shanghai.

This marks China’s shift from putting skilled technocrats at the helm to favour those who are closer and more loyal to Xi, reported Singapore Post.

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