In 1984, He Lifeng began his career as a municipal worker in Xiamen, a coastal city that had just started embracing free markets. With his two degrees in government finance and Communist Party membership, He was well-placed to play a key role in China’s experiment with capitalism.
Over the next two decades, He became a senior party official and top local leader, overseeing the rise of small and medium-sized businesses in Xiamen, which became a model for rapid economic growth in China.
Now, at 68 years old, He has been appointed as a vice premier in charge of overseeing China’s economy, at a time when growth is slowing and Beijing is relying more heavily on state-owned enterprises and party supervision.
The big question is which He will emerge as vice premier – the one who champions free markets and entrepreneurship, or the one who favors state-led initiatives and works closely with state-owned enterprises?
Despite his recent experience as a taciturn Communist Party boss, four people who know He personally have said that he was influenced by his work in Xiamen and appreciates the power of free markets in fostering economic growth.
China’s new premier, Li Qiang, has also promised to treat private companies equally with state-owned enterprises, indicating that China wants to revive entrepreneurship.
While He may be focused on immediate goals and short-term initiatives that align with the wishes of Xi Jinping, China’s top leader, there is hope among economists that he will also consider the medium-term issues and the importance of fostering entrepreneurship and free markets in China’s long-term economic growth.
