Premier Li Keqiang meets Ugandan President Yoweri Museveni in Beijing on March 31, 2015: Credit Chinese State Council.
In a somber announcement from the Chinese State Media outlet China Daily, it has been reported that China's former Premier, Li Keqiang, passed away in Shanghai following a heart attack on Friday.
Li Keqiang, Who Was He?
Li Keqiang held the esteemed position of Chinese Premier, the second-highest authority in the Chinese government, from 2013 until March 2023. Hailing from the eastern Chinese city of Anhui, Li's rapid ascent in the political ranks surprised many. By 1998, he had assumed the role of governor of Henan and was seen as China's youngest governor at the time.
In 2008, Li was further promoted to the position of vice-premier, where he diligently oversaw economic development and macroeconomic management until 2013. Notably, former Chinese President Hu Jintao saw Li Keqiang as a potential presidential successor, acknowledging his capabilities. However, in 2012, the current President, Xi Jinping, was chosen as China's top leader, while Li was appointed Premier, a role he held for two consecutive five-year terms. In March of this year, Li delivered his final report to the National People's Congress (NPC) and delivered a noteworthy speech, stressing the importance of steering China toward stable employment, inflation control, and economic growth.
The Loss of Li Keqiang and Its Implications for China
Li Keqiang was the sole high-ranking Chinese leader with a robust economic background. He navigated the country through various economic challenges, including trade tensions with the United States, the economic slowdown resulting from the COVID-19 pandemic, and elevated unemployment rates, among other economic complexities.
Despite his father's local leadership role in Anhui and the desire for him to follow a similar path, Li resisted political grooming. Instead, he pursued education, attending Peking University Law School in 1982, where he earned a Bachelor of Law degree. During his time at Peking University, Li even served as the student council president. His commitment to education persisted as he returned to Peking University to obtain a Master of Economics and a Doctor of Philosophy in Economics in 1988 and 1995, respectively. Peking University, formerly known as Beijing University (北京大), stands as China's highly prestigious educational institution and is ranked 13th globally in the 2023 Times Higher Education ranking. This remarkable level of education made Li a valuable asset in China's pursuit of global leadership, particularly in the realm of economics.
China's Economic Challenges
As of August, China's youth unemployment rate exceeded 21%, marking one of the highest levels in history, and experts suggest it could be even higher. In fact, the Chinese government stopped publishing youth unemployment data in an effort to instill optimism in the job market. Former Chinese deputy central banker Zhu Min warned that China's economy faces "tremendous challenges."
Simultaneously, China's real estate sector is grappling with a downturn due to diminished demand and oversupply. In 2017, President Xi introduced the "houses for living, not for speculation" mantra to stimulate housing purchases and sustain economic momentum. However, China now finds itself in a real estate crisis, with many Chinese citizens hesitating to invest in assets like houses and cars, instead holding onto cash due to COVID-19-related uncertainties. The wealthiest Chinese individuals are even moving their assets abroad in response to an uncertain domestic future. Notably, Country Garden, one of China's leading home developers, has faced severe financial difficulties, unable to meet bond payment obligations due to the slump in housing demand. The company, which completed at least 3,000 projects across China, has accumulated approximately $190 billion in liabilities, a sum nearly five times greater than Uganda's GDP.
Li Keqiang's Contribution to China's Belt and Road Initiative (BRI)
Li Keqiang played a pivotal role in China's Belt and Road Initiative (BRI), an infrastructure financing project that extends loans to build roads, bridges, ports, industrial parks, dams, and more in impoverished nations. Many countries, including Uganda, have greatly benefited from this initiative. During Li's tenure, Beijing allocated around US$114 billion to African nations through the BRI between 2013 and 2017.
In a notable event, Li was present in Nairobi for the signing of the US$3.8 billion Standard Gauge Railway (SGR) line, spanning 500 kilometers from Kenya's port city of Mombasa to Nairobi. His 2015 meeting with President Yoweri Museveni marked a commitment to support "Uganda Vision 2040." As a result, Uganda received various forms of assistance from China during Li's leadership. Li described President Museveni of Uganda as “an old friend of China.”
Li Keqiang's absence is deeply felt, as he could have played a crucial role in China's economic recovery and resilience to external shocks. A robust Chinese economy is essential for the success of the BRI, and the diminishing funding for the initiative in recent years has been attributed to China's economic slowdown. What President Xi once referred to as "Projects of the Century" within the BRI has undergone substantial transformation into "Small and Beautiful Projects." Li's expertise and leadership are sorely missed by the Chinese people.
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