In an article this morning in the Wall Street Journal, Tom Orlik and Esther Fund wrote an article concerning China’s new growth target of 7.5%, as it started to meet and finalize its transition to a new leadership regime. The new growth target seems to mark a change from the “breakneck” growth driven by exports towards a broader economic plan that is driven by domestic spending. This change comes after decades of double-digit growth, and new economic policies will be the focus of today’s annual National People’s COngress.
In previous days, the government has been actively striking down surging housing prices, showing that preventing a property bubble is a clear objective. During the National People’s Congress, all eyes will be on Xi Jinping, the future president, to see if he will make the certain statements to indicate the change that most people see as necessary, ie. changes to raise household income and boost spending.