China’s fundamental challenges—including weak demographics and heavy debts—are indeed tough. But it is also clear that much of what is plaguing China amounts to a nasty cyclical downturn exacerbated by Beijing’s poor policy choices. Tuesday’s big speech by Premier Li Qiang to the National People’s Congress, his first in his new role, gave scant assurance that the government recognizes that—or is willing to change course.
China’s key annual parliamentary session opened today in Beijing, and as usual the premier laid out the accomplishments of the past year and tasks for the year ahead. The big targets themselves didn’t contain any surprises: Like last year, Beijing is aiming for “around” 5% growth, 3% inflation and 12 million new urban jobs.
What is surprising, and worrying, is how far these targets seem to be diverging from reality, given the measures planned to achieve them and where the economy stands now.
Will China take down the world economy?
h/t Emeraldlight