China’s Best Growth Target May Be None at All
Another round of disappointing data make Xi Jinping’s economic objectives even more of a stretch. There’s an argument for scrapping such edicts.
China needs some heavy lifting to meet its GDP target.
Photographer: Na Bian/BloombergDisappointing economic news is becoming a reliable indicator in China. Another round of monthly reports point to an economy that isn’t falling apart, but is far softer than officials are comfortable with. The worn — and still very accurate — conclusion is that more stimulus is required to meet targets laid out by President Xi Jinping. The story is starting to feel a bit stale.
Every now and then, however, there is something in the mix worthy of extra attention. That was the case when Xi appeared to water down his commitment to meeting the hallowed goal for growth this year, which is around 5%. The People's Bank of China then took the rare step of issuing a statement accompanying poor figures on credit. These lines fed speculation that interest rates will be reduced soon, perhaps alongside new measures to crank up the expansion. This would be welcome, though the central bank has a record of extreme caution.
