After retiring from military service, Li worked in Nilka County in Xinjiang as a labourer in the grains department.

Li Zhi was highly visible during the July 2009 Ürümqi riots; he calmed crowds on the streets of the capital using loudspeakers.

[2] No official reasons were given for his removal from office; however, the Xinjiang leadership was facing tough questions from the local population on what was perceived as the poor handling of the rioting and subsequent unrest.

Some sources suggest that Li was a scapegoat, removed to calm calls for the resignation of Wang Lequan, the Xinjiang regional party chief.

The CCDI said that Li had "falsified archival documents, attempted to hide his real age from the party organization, took monetary gifts, used the convenience of his office to seek benefits for the promotion and placements of associates and to aid in the business interests of others; solicited and taken huge amounts of bribes, severely contravened socialist ethics" and "committed adultery."