Chinese state media have warned against blindly chasing faster growth and signalled more focus on boosting consumption in a flurry of articles setting the stage for a key economic meeting next week.
While officials have made every effort to hit this year’s expansion goal, coming in “a little to the left or right” of that 5% target would be “acceptable”, the official Xinhua News Agency wrote in a commentary this week, in an apparent attempt to manage expectations.
“If we do not get rid of the ‘worship of speed’ mindset and are addicted to building more projects, even if we can temporarily lift the pace of the growth, we will be taking an overdraft from the future,” the report continued.
“It’s not that we cannot grow faster — it’s a question of whether we should.”
The cautious tone may disappoint investors hoping next week’s Central Economic Work Conference will signal stronger stimulus for 2025. That event to map out targets for next year, which is typically attended by President Xi Jinping, is set to begin on Wednesday next week.
Another Xinhua commentary on China’s economy published this week touted expanding domestic demand as a key task given the “complex and severe international environment”, in a nod to rising trade and geopolitical frictions facing the Asian nation.
Boosting domestic spending is likely to be another theme of the economic conference, as Chinese exports face a rising tide of tariffs.
Despite Donald Trump’s imminent return to the White House heralding a tariff war that could decimate bilateral trade, expectations are high for officials at the two-day event to discuss keeping next year’s growth goal in line with the 2024 target.
Officials have mounted a major stimulus campaign since September to ensure China hits its annual growth goal, a high-profile political target that Beijing rarely misses. That has resulted in policymakers rolling out a steady stream of interest rate cuts and housing sector support, as well as a $1.4 trillion programme to bail out indebted local authorities.
Before the work conference kicks off, the Communist Party’s top decision-making Politburo is expected to hold talks on the economy, setting up the larger event.
The report from the 24-man Politburo will also be studied closely for any indication of the strength of monetary and fiscal policy plans for next year.