Li was born in Laoting County, Hebei Province.

He was the oldest child of Li Dazhao (1889-1927) who was the co-founder of the Chinese Communist Party (CCP).

After the death of Li Dazhao, the CCP managed to send Li Baohua to Japan to receive his college education.

Upon his return to China, Li Baohua participated in the Chinese Communist Revolution.

After the establishment of the People's Republic of China, he first served as a vice minister in the Department of Water Resources and Electric Power.