Li Qiang becomes China's premier, tasked with reviving economy

Widely perceived to be pragmatic and business-friendly, the 63-year-old Li faces the daunting task of shoring up China's uneven recovery amid global headwinds and weak confidence among consumers and the private sector.

Li takes office as tensions rise with the West over a host of issues including U.S. moves to block China's access to key technologies and as many global companies diversify supply chains to hedge their China exposure due to political risks and the disruptions of the COVID era.

The career bureaucrat replaces Li Keqiang, who is retiring after two five-year terms during which his role was seen to be steadily diminished as Xi tightened his grip on power and steered the world's second-largest economy in a more statist direction.

Li Qiang is the first premier since the founding of the People's Republic never to have served previously in the central government, meaning he may face a steep learning curve in the initial months on the job, analysts said.

Still, Li's close ties with Xi - Li was Xi's chief of staff between 2004 and 2007, when the latter was provincial party secretary of Zhejiang province - will empower him to get things done, leadership-watchers said.

"My reading of the situation is that Li Qiang will have a lot more leeway and authority within the system," said Trey McArver, co-founder of consultancy Trivium China.