Focused
Premier Li Qiang is keeping the government laser-focused on the macroeconomy.
It's been 17 days since the State Council said it is "necessary to strengthen countercyclical adjustments."
- Since then, there's been a ton of policy talk focused on supporting the private sector, stimulating rural consumption, and improving government credibility.
Call us ungrateful: But these are supply-side policies aimed at greasing the cogs of China's long-run, sustainable economic growth.
- Important? Yes.
- Critical to China's short-term economic recovery? No.
Li's a tease: But just as we thought the government had lost interest in short-term countercyclical stimulus, Wednesday's State Council plenary meeting convinced us otherwise.
The State Council's plenary meetings – which involve all the government big dogs – typically cover a bunch of wide-ranging issues.
But this meeting readout was laser-focused on the economy, calling for:
- Boosting consumption
- Stimulating investment
- Promoting industrial upgrading
- Proactively helping businesses
Li also urged government officials to “further promote and ensure the completion of annual goals.”
- That includes China's GDP growth target of "around 5%."
Get relieved: Li wants to ensure China's entire government machinery is focused on the short-term economic challenges at hand.
- That particularly involves boosting domestic demand.
Our take: If Li's serious about ensuring the completion of "annual goals," then stronger economic support is in the pipeline.