Page 8 - THE SOUTH CHINA BUSINESS JOURNAL
P. 8
NA BRIEFING Making Sense of
China?? 2017
Economic
Growth Target
During the annual Two Ses- percent, or higher if possible in The report
sions meetings last weekend, Chi- practice??. This is a modest goal repeatedly referred to
na?? political leaders announced their eco- on the heels of 6.7 percent the need to mitigate financial risks
nomic growth targets for 2017. The affair growth in 2016 ?? the lowest in that could disrupt sustainable develop-
produced few surprises: the government 26 years. ment, and more emphasis was given to
predictably released an economic and po- ensuring employment rather than high-
litical agenda that stressed the importance While the 6.5 percent figure was widely lighting growth.
of stability and continuity. anticipated, the added ??r higher if pos-
sible in practice?? provision was not. Nota- The ongoing reform and restructur-
Although the message was short on bold bly, a more literal translation of Li?? Chi- ing of the Chinese economy has been a
new policy announcements, the plan pre- nese-language speech stipulates that the persistent theme for several years. Still,
sented in Premier Li Keqiang?? annual government targets around 6.5 percent posting impressive annual growth num-
Work Report ?? often likened to the State growth, but in practice ??o try to achieve bers remains an important concern for
of the Union in the US ?? offers clues to- a better result??. economic planners. While robust GDP
wards the direction and restructuring of growth rates add confidence to the Chi-
the world?? second largest economy, as This remark may signal cautious opti- nese economy, the slow pace of market-
well as the obstacles China faces going for- mism that China?? growth could rebound, based reforms has frustrated many in the
ward. or at least a subtle warning to officials not business community.
to be content with moderate growth. Tak-
Given the deliberately crafted nature of en this way, 6.5 percent sounds more like In 2015, the government put forward the
the Work Report, slight changes in the way a baseline than a general approximation. ??wo Doubles?? project: to double the size
the government presents issues over pre- of its 2010 GDP and per capita income in
vious years can signal shifts in policies and Alternatively, announcing that the both urban and rural areas by 2020. Do-
priorities. While China?? 2017 GDP target government will merely strive towards ing so requires an average of about 6.4-6.5
appears like a logical continuation of re- higher growth rather than commit to it percent growth per year, and failure to
cent growth objectives at first glance, its may be a signal for observers to temper meet this goal would be an embarrassing
careful wording delicately recalibrates ex- their expectations. miscue for the government.
pectations for the economy?? performance
for the coming years. Contextualization of 2017?? Growth Target
Economic Growth Target China?? leadership claims to be prioritiz-
ing long-term economic restructuring
In the Work Report, Li pinned China?? and minimizing financial risks over more
2017 GDP growth target at ??round 6.5 superficial short-term growth indicators.
6
China?? 2017
Economic
Growth Target
During the annual Two Ses- percent, or higher if possible in The report
sions meetings last weekend, Chi- practice??. This is a modest goal repeatedly referred to
na?? political leaders announced their eco- on the heels of 6.7 percent the need to mitigate financial risks
nomic growth targets for 2017. The affair growth in 2016 ?? the lowest in that could disrupt sustainable develop-
produced few surprises: the government 26 years. ment, and more emphasis was given to
predictably released an economic and po- ensuring employment rather than high-
litical agenda that stressed the importance While the 6.5 percent figure was widely lighting growth.
of stability and continuity. anticipated, the added ??r higher if pos-
sible in practice?? provision was not. Nota- The ongoing reform and restructur-
Although the message was short on bold bly, a more literal translation of Li?? Chi- ing of the Chinese economy has been a
new policy announcements, the plan pre- nese-language speech stipulates that the persistent theme for several years. Still,
sented in Premier Li Keqiang?? annual government targets around 6.5 percent posting impressive annual growth num-
Work Report ?? often likened to the State growth, but in practice ??o try to achieve bers remains an important concern for
of the Union in the US ?? offers clues to- a better result??. economic planners. While robust GDP
wards the direction and restructuring of growth rates add confidence to the Chi-
the world?? second largest economy, as This remark may signal cautious opti- nese economy, the slow pace of market-
well as the obstacles China faces going for- mism that China?? growth could rebound, based reforms has frustrated many in the
ward. or at least a subtle warning to officials not business community.
to be content with moderate growth. Tak-
Given the deliberately crafted nature of en this way, 6.5 percent sounds more like In 2015, the government put forward the
the Work Report, slight changes in the way a baseline than a general approximation. ??wo Doubles?? project: to double the size
the government presents issues over pre- of its 2010 GDP and per capita income in
vious years can signal shifts in policies and Alternatively, announcing that the both urban and rural areas by 2020. Do-
priorities. While China?? 2017 GDP target government will merely strive towards ing so requires an average of about 6.4-6.5
appears like a logical continuation of re- higher growth rather than commit to it percent growth per year, and failure to
cent growth objectives at first glance, its may be a signal for observers to temper meet this goal would be an embarrassing
careful wording delicately recalibrates ex- their expectations. miscue for the government.
pectations for the economy?? performance
for the coming years. Contextualization of 2017?? Growth Target
Economic Growth Target China?? leadership claims to be prioritiz-
ing long-term economic restructuring
In the Work Report, Li pinned China?? and minimizing financial risks over more
2017 GDP growth target at ??round 6.5 superficial short-term growth indicators.
6
