Contrary to doomsday scenarios, the Chinese leadership appears well-equipped to manage lower growth. But built-in contradictions create the risk of economic stagnation.
While the European Union struggles with its migration crisis, and the United States might elect a protectionist presidential candidate, China seems set on more business as usual. In March, Prime Minister Li Keqiang confirmed to the annual National People’s Congress that the average growth rate for the five-year period through 2020 will be targeted above 6.5 percent.
Business as usual? On the one hand, the figure is not a surprise. In November, President Xi Jinping said that this growth target in the 13th Five-Year Plan would be the minimum needed to meet the Communist Party of China’s goal of doubling 2010 GDP and per capita income by 2020. …
Read more in the Berlin Policy Journal App – May/June 2016 issue.