Rumor: Li Sidelined, Xi Takes Over Economic Policy

China's leadership meets each summer at Beidaihe to discuss the year ahead. (SCMP: Communist Party elite head to Beidaihe for agenda-setting meetings)

Bowen Press is reporting Li Keqiang was sidelined, returning to his room as Xi Jinping took over the economic policy discussion.

紫禁城来鸿:北戴河会议习近平接掌中国经济 李克强退当配角
[Bowen] agency reported from Beijing Zhongnanhai sources to Bowen said the ongoing CPC Beidaihe meeting, General Secretary Xi Jinping walked onto the stage and took charge of China's overall economic work, Premier Li Keqiang has been relegated to a supporting role. A number of important economic reforms implemented by the State Council Li Keqiang under the rule of the original, has been officially halted, including state-owned enterprise reform, financial innovation. "Keqiang economics" in the Chinese economy thus die a natural death.
It says there were battles leading up to this, as Xi controlled the Central Committee and Li the State Council:
Bowen has exclusive agency earlier reported that in early July this year, the CPC top level of Beidaihe, "vacation", focusing on the issue and will discuss the development strategy of China's economy, since Xi Jinping and Li Keqiang of China's economic situation and development trend judgments major differences cause contradictions Zhongnanhai "South and North hospital hospital (ie, Xi Jinping and Li Keqiang, the CPC Central Committee led by the State Department-led) in" took place statecraft "on.
Power was already being transitioned ahead of the meetings at Beidaihe:
In particular, as the Chinese economy a series of problems, including the stock market, the network finance, real estate, etc., resulting in Xi "had no choice" on May 9 on the "People's Daily" front page under "authoritative person" published a long article "shot Li Keqiang," public announcement the he had differences with "Li Keqiang Economics," announce to the world there was a conflict between Xi Jinping and Li Keqiang.

Zhongnanhai sources of UBM society means, "People's Daily", "shot Li Keqiang" after a long article came out, the State Department's decision almost stopped, quietly transferring decision-making power from the North House (State Department) to the south of the hospital (the CPC). Almost even, July 8 Xi Jinping in Beijing hosted a forum of experts the economic situation, the current economic situation and economic work to listen to opinions and suggestions of experts and scholars, there's no Premier Li Keqiang's sake.
The article says Li Keqiang's presence at the G20 was for show, economic policy control was already in Xi's hands:
And Li Keqiang order to prove he is still "in charge of the economy," the Prime Minister, by the G20 finance ministers and central bank governors are meeting in Chengdu machine, on July 22 in Beijing, "stopped" World Bank President Jim Yong Kim, president of IMF Lagarde, WTO Director-General Azevedo, Ryder, ILO Director-General, Secretary-General of the Organisation for economic cooperation and development Gurria, Jinrongwending Council, Xi Kani, pulled them Diaoyutai State Guesthouse held " 1 + 6 "round-table dialogue around the" new growth momentum "issue in China's economic transformation in-depth exchanges.

This is the most recent high-level CCP several major economic conference for the first time by the Li led the meeting, Li Keqiang, "got his wish" to fulfill "in charge of the economy," the prime minister role.

However, sources means, according to the traditional Communist "Party leadership all" principle, Li Keqiang eventually "arm twisted, but the thigh," as the Chinese economy baton from the Zhongnanhai "North House" to "Southern Branch", Li Keqiang fact already sidelined, the Beidaihe meeting launched the end of July, it is completely deprived of power Li Keqiang, "China's economic Explorer" in the title, formal wear to Xi Jinping's head.
UBM Zhongnanhai message to remind society, pay attention to the Xinhua News Agency August 7 to "study in progress" in the name, published "Xi Jinping, the economy should tell you so grab" a text, "the article unmistakably tell the outside world, from now start, Xi Jinping is the helmsman of China's economy, the head of China's economy can only listen to name learning, not surnamed Li. "the source refers to articles published during the conference conducted at Beidaihe, not" casual "out of.
Among the policies quietly stopped: debt-to-equity SOE reform, and moving rural and migrant workers to cities as part of a push for urbanization.

The report also says reforms are moving slowly because 40 percent of provincial leaders are set to retire around the 19th National Congress in autumn 2017. Once they are out, reforms should speed up.
Reported that the current Chinese officials lack the incentive of economic reform. Nineteen major personnel reshuffle means from the central to local officials at all levels will be a change. About 40% of provincial leaders will retire in the nineteenth large front and rear, so before nineteen large, state-owned enterprise reform will progress slowly, but in the nineteenth large as significant policy changes, the reform will speed up progress.

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Related: Li Keqiang Still Pushing Equity Financing

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