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Li Keqiang index

Li Keqiang index is a science topic covered in the lgStudy science library. This page brings together a partial reference excerpt, illustrations, worked examples, real-world applications and a short study plan, so you can understand Li Keqiang index rather than just read about it. In short: Li Keqiang index or Keqiang index (Chinese: 克强指数) is an economic measurement index created by The Economist in 2010 to measure China's economy using three indicators, as reportedly preferred by Li Keqiang, formerly the premier of China, as a better economic indicator than official numbers of GDP. According to a leaked State Department memo, Li Keqiang (then the Chinese Communist Party Committee Secretary of Liaoning…

Key takeaways

  • Li Keqiang index belongs to science; place it in that map before memorising details.
  • Learn the definition first, then one example that makes the definition concrete.
  • Connect Li Keqiang index to a quantity you can measure, compute or draw — that is where exam questions come from.
  • Reproduce the core statement of Li Keqiang index from memory before moving on to harder problems.

Reference excerpt

Li Keqiang index or Keqiang index (Chinese: 克强指数) is an economic measurement index created by The Economist in 2010 to measure China's economy using three indicators, as reportedly preferred by Li Keqiang, formerly the premier of China, as a better economic indicator than official numbers of GDP. According to a leaked State Department memo, Li Keqiang (then the Chinese Communist Party Committee Secretary of Liaoning province) told visiting US ambassador Clark Randt in 2007 that the GDP figures in Liaoning were unreliable and that he himself used three other indicators: the railway cargo volume, electricity consumption and loans disbursed by banks. The "Keqiang index" is also used by Haitong Securities released in 2013, suggesting decelerating China's economic growth since the beginning of 2013. According to The Economist, the reliability of the index was undermined during the COVID-19 pandemic as it did not account for the decline in retail sales, air travel and the property market.

See also

Economy of China Li Keqiang Government Big Mac Index, another index by The Economist

References

Further reading "Qiang Ker-ching: How to measure China's true economic growth: In search of a successor to the Li Keqiang Index". The Economist. March 9, 2023. Retrieved 28 October 2023.

Worked examples

Example 1 — a first encounter with Li Keqiang index

Start with the simplest possible case. Write down what Li Keqiang index claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to Li Keqiang index before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about Li Keqiang index ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of Li Keqiang index

In research
Li Keqiang index appears in science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry
Engineering practice reuses Li Keqiang index in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom
Li Keqiang index is common in secondary-school and first-year university syllabi. It links to neighbouring topics Economy of China, Eponymous indices, Li Keqiang, so understanding it makes those chapters shorter.
In everyday life
Look for Li Keqiang index outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.
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How to study Li Keqiang index in 20 minutes

  1. Read the reference excerpt below once, without taking notes.
  2. Close the page and write down what Li Keqiang index means in your own words.
  3. Compare your version with the excerpt and mark what you missed.
  4. Work through the three examples above with pen and paper.
  5. Explain Li Keqiang index out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is Li Keqiang index in simple terms?

Li Keqiang index or Keqiang index (Chinese: 克强指数) is an economic measurement index created by The Economist in 2010 to measure China's economy using three indicators, as reportedly preferred by Li Keqiang, formerly the premier of China, as a better economic indicator than official numbers of GDP. A…

Why does Li Keqiang index matter?

Because it connects several science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study Li Keqiang index?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on Li Keqiang index.

Tags

  • Economy of China
  • Eponymous indices
  • Li Keqiang
  • Macroeconomic indicators

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