China cut its growth target, closing a decades-long chapter of breakneck expansion, but maintained a focus on high-tech advancement, defense modernization, and economic self-reliance.
The new aim of between 4.5% and 5% this year is the lowest on record, with the country’s premier saying that “while acknowledging our achievements, we are also keenly aware of the difficulties and challenges we face.”
Policymakers at the annual “Two Sessions” meetings in Beijing prioritized innovation, domestic consumption, and improving security, with defense spending in particular outpacing GDP growth. And the focus on moving up the tech value chain likely means that “sectors such as AI, semiconductors, and cloud computing will likely continue to benefit from outsized investment,” ING’s China chief economist wrote.
