Next premier Li Keqiang sets out case for reform

The man who will become premier next year has made a strong case for reform just days after the unveiling of the Communist Party's new leadership, saying reform is the biggest dividend.

Li Keqiang, speaking at a seminar with selected local officials on Wednesday, organised by the State Council, said China would still be able to see the completion of a "moderately prosperous society" by 2020 even with a lower economic growth rate of about 7 per cent a year, China News Service reported.

"We do not blindly pursue gross domestic product growth and it is very likely that our future development will go through a period of moderate growth rate that can hardly stay in double digits," he said. "To achieve the goal [of building a moderately prosperous society], we'll have to rely on reform, which still has enormous scope and potential to be explored."

Analysts said the remarks by Li, 57, who was elevated to No 2 in the party hierarchy last week and will succeed Premier Wen Jiabao in March, could be viewed as a strong political message calling for bolder reform.

Professor Hu Xingdou, a Beijing-based analyst, said: "It is very encouraging to see that our next premier has shown strong support for reform despite all the difficulties we have encountered and the disputes about the future direction of the country.

"But we have yet to hear his appeal for bolder political reform, which has become the real cause of many of China's political, social and economic woes."

Li's remarks appeared to echo the key development goals laid out by President Hu Jintao in his farewell speech at the opening of the party's 18th national congress this month.