• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Friday, May 9
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Security video shows brazen sexual assault of California woman by homeless man

    October 24, 2023

    Woman makes disturbing discovery after her boyfriend chases away home intruder who stabbed him

    October 24, 2023

    Poll finds Americans overwhelmingly support Israel’s war on Hamas, but younger Americans defend Hamas

    October 24, 2023

    Off-duty pilot charged with 83 counts of attempted murder after allegedly trying to shut off engines midflight on Alaska Airlines

    October 23, 2023

    Leaked audio of Shelia Jackson Lee abusively cursing staffer

    October 22, 2023
  • Health

    Disparities In Cataract Care Are A Sorry Sight

    October 16, 2023

    Vaccine Stocks—Including Pfizer, Moderna, BioNTech And Novavax—Slide Amid Plummeting Demand

    October 16, 2023

    Long-term steroid use should be a last resort

    October 16, 2023

    Rite Aid Files For Bankruptcy With More ‘Underperforming Stores’ To Close

    October 16, 2023

    Who’s Still Dying From Complications Related To Covid-19?

    October 16, 2023
  • World

    New York Democrat Dan Goldman Accuses ‘Conservatives in the South’ of Holding Rallies with ‘Swastikas’

    October 13, 2023

    IDF Ret. Major General Describes Rushing to Save Son, Granddaughter During Hamas Invasion

    October 13, 2023

    Black Lives Matter Group Deletes Tweet Showing Support for Hamas 

    October 13, 2023

    AOC Denounces NYC Rally Cheering Hamas Terrorism: ‘Unacceptable’

    October 13, 2023

    L.A. Prosecutors Call Out Soros-Backed Gascón for Silence on Israel

    October 13, 2023
  • Business

    Trump Announces First Post-Tariff Trade Deal

    May 8, 2025

    Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

    May 7, 2025

    Tyson Foods Announces It Will Bend The Knee To Trump Admin’s New Rules

    May 7, 2025

    Federal Reserve Holds Interest Rates Steady Despite Pressure From Trump

    May 7, 2025

    ‘Wait Them Out’: John Kennedy Tells Larry Kudlow One Lie He Suspects China’s Telling US

    May 7, 2025
  • Finance

    Ending China’s De Minimis Exception Brings 3 Benefits for Americans

    April 17, 2025

    The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

    April 17, 2025

    Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

    April 17, 2025

    How China’s Companies Are Responding to the US Trade War

    April 16, 2025

    The US Flip-flop Over H20 Chip Restrictions 

    April 16, 2025
  • Tech

    Cruz Confronts Zuckerberg on Pointless Warning for Child Porn Searches

    February 2, 2024

    FTX Abandons Plans to Relaunch Crypto Exchange, Commits to Full Repayment of Customers and Creditors

    February 2, 2024

    Elon Musk Proposes Tesla Reincorporates in Texas After Delaware Judge Voids Pay Package

    February 2, 2024

    Tesla’s Elon Musk Tops Disney’s Bob Iger as Most Overrated Chief Executive

    February 2, 2024

    Mark Zuckerberg’s Wealth Grew $84 Billion in 2023 as Pedophiles Target Children on Facebook, Instagram

    February 2, 2024
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Finance»China’s Two Sessions Announces a 5 Percent Growth Target and 1 Trillion Yuan National Bond
Finance

China’s Two Sessions Announces a 5 Percent Growth Target and 1 Trillion Yuan National Bond

March 11, 2024No Comments5 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
China’s Two Sessions Announces a 5 Percent Growth Target and 1 Trillion Yuan National Bond
Share
Facebook Twitter LinkedIn Pinterest Email

China’s “Two Sessions” (the annual meetings of the National People’s Congress and the Chinese People’s Political Consultative Conference) closed on Monday in Beijing. The Two Sessions featured two important announcements regarding China’s economy: a 5 percent GDP growth goal for 2024, and a deficit rate of 3 percent with the issuing of 1 trillion yuan national bond. Notably, President Xi Jinping’s policy papers centered around ensuring “stability” rather than pursuing “progress.”

The GDP growth goal, despite being on par with its past years’ sluggish growth, remains challenging. The Chinese economy has reached a historical inflection point, triggered by the implosion of the real estate sector, high youth unemployment, COVID-19, and a decrease in export volume exacerbated by decoupling with the West. Xi’s top-down leadership style, which rewards loyalty and focuses on tighter control, has rebalanced the economy from market-based to state-planned on the spectrum. 

The 5 percent goal is no easy task given the continued global pandemic recovery, supply chain disruptions, trade tensions, and military conflicts around the world. As a comparison, China’s 2023 growth figure of 5 percent, though likely inflated, contrasts with the OECD GDP growth average of 1.6 percent, which dropped from 2.9 percent in 2022. 

The deficit rate is set to be 3 percent, in line with last year’s figure. The government announced the issuance of 1 trillion yuan in special national bonds. The main goal is to increase the leverage of the central government to decrease the burden and risk of regional government deficits. According to local sources, some Chinese regional governments are facing high pressure in paying salaries and investment bonds. Local hidden debts continue to pile up in forms such as borrowings made by state-owned enterprises. Recent central government borrowing has mostly gone to repay local debt and disaster relief.

See also  Far-Left Late Night TV’s Ad Revenue Collapses 41 Percent

The Two Sessions also indicated a sharper focus on developing critical sectors, especially biomedicine, nanotechnology, and artificial intelligence. Media reports highlighted successful cases of upgrading the manufacturing sector through automation. The focus on using technology to enhance people’s quality of life indicates the domestic orientation of state planning.

The central government recently sought to promote home purchases to salvage the real estate sector by lowering interest rates and lifting purchase restrictions, which has yet to lead to an effective recovery in the housing market. Financial regulations have become more stringent for public companies and the stock market, and practitioners face limitations for compensation as well as trading options. Based on the status quo of China’s economic and political situations, this time we are witnessing a decline that the government cannot simply overturn in the short run through policy simulations. 

It has long been understood by the top Chinese leadership that China’s double-digit economic growth would face an inflection point somewhere in the 2020s. As early as the 2010s, China focused on driving the three main components of GDP growth: investment, consumption, and exports. These so-called “three engines” each contributed to different times of the decades-long economic miracle. 

Deng Xiaoping, while inheriting a traumatized population and depleted land after years of relentless Communist revolutions, initiated the Reform and Opening in December 1978. The next 20 years were then marked by what Deng called rapid capitalist development, essentially aided by foreign direct investment, a huge population base, technological progress, and the demand for infrastructure and consumption.

See also  Dow Jones Rises On Jobless Claims, Cool PPI Inflation Data; Cathie Wood Sells Tesla Stock

China’s economic growth shifted from being driven by investment to being driven by consumption. From 2009 to 2019, investment decreased in proportion while consumption rose. However, it remains low on a relative basis. Consumption accounts for 55 to 64 percent of China’s GDP, while in advanced economies around the world consumption props up 70 to 80 percent of total GDP. 

The Chinese government has been keenly aware of this situation and has encouraged public consumption in all tiers of cities in anticipation of the decline in exports, but with limited success. In the future, China will continue to leverage its strengths in newer export areas, such as electric vehicles, in which it is performing well globally.

The government has often found people are not responding to its policies in practice. Xi has tried to instill market confidence in the private sector, but private businesses and their owners everywhere feel immense disadvantages against their growth. China’s economy developed as a “socialist country with Chinese characteristics” – as Deng Xiaoping called it – with state-owned enterprises accounting for 60 percent of China’s market capitalization. Businesses are unwilling to invest, and entrepreneurs are taking a long pause in an era of both economic and political uncertainty. 

The collapse of the real estate sector has wiped out huge chunks of household savings over the course of two years, making the government’s policies to encourage personal consumption and investment far from persuasive. Currently, individuals are not consuming, businesses are not investing, and entrepreneurs are not creating. Amid those headwinds, the Two Sessions prioritized stability, the development of critical sectors, and stimulating the economy.  

See also  Fed's Kashkari sees 40% chance of 'meaningfully higher' interest rates
Announces bond Chinas growth National Percent Sessions target Trillion Yuan
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

Tyson Foods Announces It Will Bend The Knee To Trump Admin’s New Rules

May 7, 2025

‘Wait Them Out’: John Kennedy Tells Larry Kudlow One Lie He Suspects China’s Telling US

May 7, 2025

‘Oracle of Omaha’: Warren Buffett Announces Retirement, Confirms Successor

May 4, 2025
Add A Comment

Leave A Reply Cancel Reply

Top Posts

China Capital Beijing’s Population Decline For First Time In 2 Decades. Here’s Why

March 22, 2023

HERE WE GO: Black Lives Matter Activists Protest in Ohio After Pregnant Black Woman Was Shot Dead After She Tried to Run Over Cop (VIDEO) | The Gateway Pundit

September 4, 2023

Malaysia Launches Police Raids Against Swatch Stores over LGBT ‘Pride’ Watches

May 27, 2023

22-year-old star linked with Bayern Munich move has verbal agreement with Arsenal

June 25, 2023
Don't Miss

Trump Announces First Post-Tariff Trade Deal

Business May 8, 2025

President Donald Trump announced Thursday the U.S. has reached a trade agreement with the U.K.,…

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025

Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

May 7, 2025
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,110)
  • Entertainment (4,220)
  • Finance (3,202)
  • Health (1,938)
  • Lifestyle (1,626)
  • Politics (3,084)
  • Sports (4,036)
  • Tech (2,006)
  • Uncategorized (4)
  • World (3,944)
Our Picks

Southeast Asian Tourism Slowly, But Steadily, Recovered in 2023

April 30, 2024

REPORT: Tim Patrick Suffers Another Brutal Injury After Missing All Last Season With Brutal Injury

August 2, 2023

Deutsche Bank Predicts up to 120% Upside for These 2 ‘Strong Buy’ Stocks — Here’s Why They Could Jump

September 22, 2023
Popular Posts

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025
© 2025 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.