Source: Fortune.com
Summary
China has set a lower economic growth target of 4.5% to 5% for this year, citing “grave and complex” challenges at home and abroad. Premier Li Qiang announced the target in his report to the National People’s Congress, which is expected to approve the annual report and budget. The government is striving to balance reviving the economy with leader Xi Jinping’s ambitions to build China into a global power in advanced technologies. The report also highlighted the need to boost consumer spending and stabilize the property market.
Our Reading
The numbers tell one story.
China’s lower growth target is in line with longer-term goals that prioritize “high-quality development” over high growth rates. The government is walking a tightrope between reviving the economy and pursuing Xi Jinping’s ambitions. The report’s emphasis on “political loyalty” in the military suggests a continued focus on Party control. The property market slump and weak consumer spending remain major challenges. The government’s approach is cautious, with no major new stimulus to boost growth.
The strategy enters a familiar phase.
Author: Evan Null
