China’s state media warned against a blind rush for faster growth and hinted at a greater focus on boosting spending in a series of articles setting the stage for a key economic meeting next week.
While officials have made every effort to meet this year’s expansion target, coming “slightly to the left or right” of that target of about 5% would be “acceptable,” the official Xinhua news agency wrote in comment late Tuesday, in an apparent attempt to manage expectations.
“If we don’t get rid of the ‘worship of speed’ mindset and are addicted to building more projects, even if we can temporarily accelerate the pace of growth, we will be overshooting the future,” the report continued. “It’s not that we can’t grow faster – the question is whether we should.”
The cautious tone on growth could disappoint investors hoping that next week’s Central Economic Work Conference will signal stronger stimulus for 2025. The event, which sets targets for next year and is usually attended by President Xi Jinping, is set to begin WednesdayBloomberg News reported earlier, citing people familiar with the matter.
Another Xinhua comment on China’s economy released this week touted boosting domestic demand as a key task given the “complex and difficult international environment,” a sign of growing trade and geopolitical frictions facing the Asian nation. Increasing domestic consumption is likely to be another topic of the conference, as Chinese exports face a rising tide of tariffs.
Despite Donald Trump’s imminent return to the White House announcing a tariff war that could decimate bilateral trade, expectations are high for officials at a two-day event to discuss keeping next year’s growth target in line with the 2024 target.
Officials have launched a major stimulus campaign since September to ensure China hits its annual growth target, a high-profile political target that Beijing rarely misses. It saw policymakers roll out a steady stream of rate cuts and support for the housing sector, as well as a $1.4 trillion program to bail out indebted local governments.
Before the working conference begins, the decision-making Politburo of the Communist Party is scheduled to hold its December meeting on the economy, preparing for the bigger event. The reading from the 24-member body will also be scrutinized for any indication of the strength of monetary and fiscal policy plans for next year.
