China's New No.2

Li Qiang, a Xi Jinping acolyte, faces major challenges in steering the economy

- Benjamin Purvis

As the Chinese Communist Party’s top boss in Shanghai, Li Qiang helped smooth Elon Musk’s path to opening Tesla Inc.’s first overseas factory. He’s been an outspoken advocate for privately owned businesses, too. But he was also the driving force behind the Covid-related lockdown that earlier this year put the brakes on economic activity in mainland China’s biggest financial hub.

Now he’s been catapulted into the party’s No. 2 slot—behind President Xi Jinping—and all eyes are on how he might shape policy on the national level as the world’s second-largest economy navigates an array of challenges, from demographic shifts and US technology sanctions to the fallout from antiCovid-19 measures and a meltdown in housing.

Li’s promotion puts him in line within the coming months to take over from Li Keqiang as premier, a crucial economic role overseeing all government ministries, including the central bank. In his three-decade career as a local and provincial politician on China’s wealthy east coast, Li Qiang has carved out a pro-business position that seeks to encourage economic growth through investment in high-tech industries, balanced against environmental protection and maintaining a tighter rein on real estate speculation.

His position within the party’s all-important Politburo standing committee rests first and foremost on his loyalty to Xi, who last month installed allies in the CCP’s top posts and cemented his status as the most powerful Chinese leader since Mao Zedong. That’s raised doubts about just how much any of Li’s pro-business views might shape his choices in the central government.