During this year’s annual conference of the Party’s rubber-stamp legislature in May, Li spoke about the economic effects of the CCP virus epidemic and the need to recover from the downturn.
But during an economic seminar organized by Xi at Zhongnanhai—the Party’s headquarters—on Aug. 24, Li was conspicuously absent.
State-run media Xinhua reported that Xi invited nine top Chinese economists to the seminar. Xi was accompanied by Wang Huning, head of the Party’s Secretariat and leader of China’s propaganda system, and Han Zheng, the vice premier in charge of Hong Kong and Macau affairs.
“Xi wanted to show that he is the real boss of the Chinese economy by organizing this seminar without Li. He wanted to tell people that Li doesn’t make any decisions,” said U.S.-based China affairs commentator Tang Jingyuan.
Since May, Xi and Li have issued conflicting comments regarding the state of China’s economy.
Xi emphasized that his goal for China is to become “a moderately prosperous society,” and claimed that China is advancing toward achieving that goal, with “400 million people in the middle class.”
During a speech at the May 28 session of the rubber-stamp legislature, Li revealed that 600 million Chinese only earn 1,000 yuan ($140) per month, which isn’t enough to cover monthly rent on a one-bedroom apartment in a midsized Chinese city.
Li also promoted the idea of setting up a “street vendor economy” to alleviate rising unemployment as a result of the pandemic. But state media such as Xinhua later criticized the policy idea, saying street vendors would damage a modern metropolis’s image.
This will not forebode well for him if Li is able to gather his own forces or those of Jiang Zemin that were purged by Xi.