The appointment of Mr Li to the China-Singapore Joint Council for Bilateral Cooperation (JCBC) is expected to give ties a significant boost due to his already strong relations with Singapore officials, built up during his last post as the top official of north-eastern Liaoning province.

If the appointment comes through, Mr Li, the country's seventh-ranked leader, will replace Vice-Premier Wu Yi, current co-chair of the JCBC. Madam Wu, 69, will retire from politics in March.

On the Singapore side, Deputy Prime Minister Wong Kan Seng is co-chair of the council.

One other possible candidate for the JCBC co-chairmanship is former Beijing mayor Wang Qishan.

Both Mr Wang and Mr Li are expected to be named vice-premiers in March, when China's legislature holds its annual session.

However, there is a stronger likelihood of Mr Li being appointed as Madam Wu's successor, sources told The Straits Times.

Mr Wang, who saw Beijing through the Sars crisis in 2003, is likely to have his hands full overseeing China's financial sector as vice-premier. Also, he has had less interaction with Singapore in the past compared to Mr Li.

Mr Li is expected to be appointed executive vice-premier, taking over the economic portfolios left by late vice-premier Huang Ju, who died last June.

The JCBC was mooted by Senior Minister Goh Chok Tong, when he was prime minister, in April 2002. It was officially set up in 2003 as a platform to boost bilateral political ties and deepen economic collaboration.

That same year, Singapore signalled that it wanted to play a role in the rejuvenation of China's north-east region and formed the Singapore-Liaoning Economic and Trade Council as the platform to support the campaign.

Thus began close and frequent interaction between Singapore leaders, businesses, and Mr Li, 52, who was Liaoning's top official from late 2004 till last year.

Last October, he was elevated to the Chinese Communist Party's elite nine-member Politburo standing committee led by President Hu Jintao.

During his tenure as Liaoning party boss, Mr Li met top Singapore leaders including Minister Mentor Lee Kuan Yew.

Under his watch, Singapore investment into the province grew. Businesses including Singapore business park developer Ascendas and transport giant ComfortDelGro have pumped in millions of dollars into different projects in the provincial capital, Shenyang.

In China, where personal rapport is important, Mr Li's appointment as the JCBC Chinese co-chair looks to benefit discussions of major items including negotiations for a bilateral Free Trade Agreement between Singapore and China, as well as the joint development of an 'eco-city' in the northern port city of Tianjin.

His bright political future - talk is that he is being groomed to become China's next premier - will also further the development of strong ties between top-level leaders of the two countries in the years to come.

tracyq@sph.com.sg