Chinese state media cautioned against blindly pursuing rapid growth and hinted at a greater emphasis on increasing consumption in a series of articles leading up to a crucial economic meeting next week.
Despite efforts to reach this year’s growth target, wavering slightly from the approximately 5% goal would be deemed “acceptable,” as stated by the official Xinhua News Agency in a commentary on Tuesday. This suggests managing expectations for the forthcoming central economic meeting.
The report continued by emphasizing the dangers of prioritizing speed over sustainability in growth, warning against taking shortcuts that could compromise future prospects. It raised the question of whether rapid growth is always beneficial.
This cautious stance on growth may disappoint investors anticipating stronger stimulus policies for 2025 following next week’s Central Economic Work Conference, which typically sets targets for the upcoming year and is attended by President Xi Jinping, as reported by Bloomberg News.
Another Xinhua commentary released this week highlighted the importance of boosting domestic demand amid global economic challenges, particularly escalating trade tensions. Strengthening domestic spending is expected to be a key focus of the upcoming conference as China looks to counter increasing tariffs on exports.
Despite concerns about a potential tariff war under the returning Donald Trump administration, officials are anticipated to discuss aligning next year’s growth target with the 2024 goal during the two-day event.
To ensure China meets its annual growth target, policymakers have implemented significant stimulus measures since September, including rate cuts, support for the housing sector, and a $1.4 trillion rescue program for local authorities facing debt issues.
Prior to the start of the work conference, the Communist Party’s Politburo will convene to discuss the economy, laying the groundwork for the upcoming event. The decisions made by this influential body will provide insight into the monetary and fiscal policies to be pursued in the coming year.
