Talk of Li Keqiang being sidelined is not backed by power shuffle

The appointment of Premier Li Keqiang to the Communist Party's powerful new state security committee should serve to dampen speculation inside and outside China that President Xi Jinping is weakening the role of his No 2 in a bid to consolidate power.

Li has been named vice-chairman of the National Security Commission following his inclusion in the Central Leading Group for Overall Reform, which is tasked with implementing a bold set of economic reforms. The twin announcement surprised those who argued that Li had been pushed to the sidelines.

There were strong reasons for thinking that Xi was attempting to establish himself as China's most dominant leader since Deng Xiaoping. There was talk of an unsettling move towards "one party, one doctrine, one leader".

Analysts had pointed to Li's lack of involvement in drafting the party's central reform blueprint at the landmark third plenum meeting in November as evidence of his waning authority. Furthermore, since national security is usually the purview of the party's general secretary - currently Xi - some predicted Li would be the one to lose out in any restructuring of power, with the State Council, led by Li, appearing marginalised by the two new agencies.

By far the best way for the party to silence whispers of Xi's push for dominance would have been to appoint Xi as the leader of the National Security Commission and Li the leader of the "leading small group" for reform - a leading small group is a body set up to co-ordinate the delivery of the Politburo's policy decisions.

This approach would have reaped the best rewards. First, although "comprehensive reform" is a crucial goal for the party over the next 10 years, its major focus is restructuring the economy. As leader of the small group for reform, Li would have had the remit to implement the planned reforms quickly and efficiently.