China is shifting its focus from rigid GDP growth targets to more sustainable and qualitative economic improvements, according to an editorial in the state-run People’s Daily newspaper.
In a shift from its usual emphasis on achieving specific growth rates, the government indicated that a pace of economic growth below 5% is now acceptable.
This move comes as the world’s second-largest economy grapples with a series of challenges, including a persistent property sector crisis and mounting local government debt.
China’s economy has struggled to gain momentum
Earlier this year, China set a target of “around 5%” GDP growth, but the economy has struggled to gain momentum due to a prolonged downturn in the property sector, which has weighed heavily on broader economic activity.
Alongside this, local governments are burdened with high levels of debt, which has further complicated efforts to stimulate growth.
In response to these challenges, Beijing has implemented a range of stimulus measures since September, although these efforts have yielded only modest results.
Many economists argue that additional policy support is essential to bolster the economy and revive investor confidence.
Concerns have also been heightened by global uncertainties, particularly the ongoing trade tensions with the United States, with US President-elect Donald Trump’s tariff threats seen as a significant impediment to China’s economic recovery.
The People’s Daily editorial emphasizes that China’s economic strategy is now more focused on qualitative growth—improvements in the quality of economic activities and long-term stability—rather than just striving for high quantitative growth figures.
China’s leaders have acknowledged economic recovery will not be easy
The editorial urges against prioritizing speed for the sake of growth, stressing that reckless expansion and indiscriminate project launches could harm the country’s future potential.
It argues that an economy built on sustainable growth is preferable to one that merely seeks short-term gains.
China’s leaders have acknowledged that economic recovery will not be a quick or easy process.
The editorial pointed out that while economic growth is important, the focus should be on creating a stable foundation for long-term prosperity, rather than obsessing over meeting a specific growth number.
The statement also reflects a shift in policy priorities, signaling that a more balanced and cautious approach may be better suited to China’s evolving economic landscape.
The commentary further warned of global economic risks, citing increasing instability in international markets and the possibility of heightened geopolitical tensions.
The editorial subtly referenced US actions, including ongoing efforts to curb Chinese technological advancements and trade practices, which have contributed to a sense of economic uncertainty for China.
Despite the government’s efforts, the editorial also acknowledged that domestic consumption remains weak, and stabilizing investment is proving increasingly difficult.
These factors, coupled with a less-than-solid economic recovery, point to a challenging period ahead for China’s economy.
While China remains committed to steering its economic growth on a more sustainable path, it is clear that the road to recovery may be longer and more complex than originally anticipated.
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