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☆ China gives itself easy GDP homework
▼ + stars: | 2023-03-06 | by ( Pete Sweeney | Thomson Reuters | Asia Economics Editor Pete Sweeney Joined Reuters Breakingviews In Hong Kong In September Previously He Served As Reuters' Chief Correspondent For China Economy | ) www.reuters.com time to read: +4 min

HONG KONG, March 6 (Reuters Breakingviews) - China aims to grow GDP by “around 5%” in 2023, which might seem low given last year’s 3% marked the country’s weakest performance in decades. Chen Long of Plenum China notes that the annual work report, usually an important window into the economy and official priorities for the year ahead, dedicates only six pages to discussing the future, compared to 22 pages last year. That may be because Premier Li Keqiang, who gives the work report, is on his way out along with other reformers. By keeping goals conservative and methods vaguer than usual, the government makes it harder for newcomers to fail. The government is aiming for a 2023 budget deficit target of 3% of gross domestic product, according to the report, widening from a deficit goal of around 2.8% last year.

☆ Asia markets to rise as investors further digest China's modest growth target
▼ + stars: | 2023-03-06 | by ( Jihye Lee | ) www.cnbc.com time to read: +1 min

The Hang Seng index on Tuesday gained 1.84%, or 363.88 points — the most gains the index has seen since January 2018, when the index rose nearly 2% on the first trading session of the year. Stocks in Asia-Pacific were set to trade higher on Monday as investors further digested China's growth target set in its parliamentary sessions and looked ahead to a week of economic data. The Nikkei futures contract in Chicago was at 28,196 and its counterpart in Osaka was at 28,210, up against the Nikkei 225's last close at 27,927.47. South Korea's inflation showed further easing in February. Futures for the Hang Seng index also pointed towards a higher open as investors further digested key targets released from Chinese Premier Li Keqiang's government work report released Sunday.

☆ China's Li Keqiang announces lowest GDP target in decades amid major economic leadership overhaul
▼ + stars: | 2023-03-06 | by ( Laura He | ) edition.cnn.com time to read: +6 min

Hong Kong CNN —China’s outgoing Premier Li Keqiang has announced the country’s lowest GDP growth target in decades, highlighting the domestic and global challenges the world’s second largest economy still faces despite its decision late last year to ditch draconian anti-Covid measures. It fell well short of the official growth target of “around 5.5%.”“Having declared the end of pandemic, the leaders are sticking to the slowing GDP growth path in the long term by lowering annual GDP target gradually,” said Ken Cheung, chief Asian foreign exchange strategist at Mizuho Bank. “Moreover, China has been downplaying the numeric GDP target and shifted to balance the quality since President Xi’s era,” he said. Premier Li also said the government would only raise fiscal spending by 5.6% this year, which is lower than the growth of 6.1% in fiscal spending in 2022. “After three years of pandemic [measures], it could be more than desirable for governments, especially the local governments, to restore fiscal resilience,” said Citi analysts.

☆ China takes a cautious approach to its economy in 2023
▼ + stars: | 2023-03-06 | by ( Evelyn Cheng | ) www.cnbc.com time to read: +4 min

Beijing announced Sunday a target of "around 5%" growth in gross domestic product for 2023, with only a modest increase in fiscal support. "The government's conservative growth target of 5% for 2023 recognizes that the pickup in China's growth continues to face headwinds," Martin Petch, vice president and senior credit officer, Moody's Investors Service, said in a note. "Some local governments are finding economic recovery difficult and are facing prominent fiscal imbalances," the report said. Consumption is keyConsumption can become the primary driver of economic growth this year, Li Chunlin, deputy director at the NDRC, told reporters Monday. An overall recovery in the economy can help fiscal revenues grow, and boost demand for workers, he said.

☆ China to guard against risks among property developers - Premier Li
▼ + stars: | 2023-03-05 | by ( ) www.reuters.com time to read: +3 min

Premier Li Keqiang made guarding against risks to top property developers one of the government's priorities this year, amid still cautious buyer sentiment, following through on the work done at a key economic meeting in December. "There are more potential risks in the real estate market and some small and medium-sized financial institutions are exposed to risks," Li said in the government's work report for 2023. "Only when consumer demand for housing is boosted can other real estate problems, including the problem of financial risks of leading housing companies, be truly resolved." Premier Li said the government would resolve housing issues for young people and support the needs of homebuyers. China will ensure developers deliver pre-sold properties and expand the supply of affordable rental housing, the planner said.

☆ China to promote vaccine development, new medicines
▼ + stars: | 2023-03-05 | by ( ) www.reuters.com time to read: +2 min

BEIJING, March 5 (Reuters) - China will prevent and control health outbreaks in a more scientific, precise and efficient way, and upgrade vaccines and develop new medicines to ensure enough supply for the public, Premier Li Keqiang said on Sunday. Last month, China's top leaders declared a "major victory" over COVID, claiming the world's lowest fatality rate, although experts have questioned that data. During last year's parliament meeting, the government said the country would speed up research and development of vaccines and drugs. On Sunday, the NDRC also said China will make continuous efforts to ensure the production, distribution and supply of key medical supplies. Reporting by Ethan Wang and Bernard Orr; Editing by William Mallard and Tom HogueOur Standards: The Thomson Reuters Trust Principles.

☆ China to guard against risks in property market - Premier Li
▼ + stars: | 2023-03-05 | by ( ) www.reuters.com time to read: +1 min

BEIJING, March 5 (Reuters) - Warning that risks remain in the property market, China's government said in a report released at parliament's annual opening on Sunday that it would promote the sector's stable development and prevent disorderly expansion by developers. "There are more potential risks in the real estate market and some small and medium-sized financial institutions are exposed to risks," Premier Li Keqiang said in the work report. Li made guarding against risks to top property developers this year one of the government's priorities this year, following through on the work done at a key economic meeting in December. China will also insist that "housing is for living, not for speculation," according to a separate report by the state economic planner, though Li did not mention it in the government 2023 work outlook. China will ensure developers deliver pre-sold properties and expand the supply of affordable rental housing, the planner said.

March 6 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. Monetary policy decisions from Australia and Japan on Wednesday and Friday, respectively, will be market-moving events too. Before that however, investors have a deluge of headlines from China this weekend to digest. Inflation figures from South Korea, The Philippines, Thailand and Taiwan this week will be closely watched by investors and policymakers alike. With the Fed seemingly on track to tighten policy further, a renewed rise in the dollar could intensify FX-fueled inflationary pressures in Asia.

☆ China sets GDP target of 'around 5%' for 2023
▼ + stars: | 2023-03-05 | by ( Evelyn Cheng | ) www.cnbc.com time to read: 1 min

BEIJING — China set a growth target of "around 5%" for 2023, according to Premier Li Keqiang's government work report released Sunday. Analysts generally expected China to set a GDP target of above 5% for 2023. China also set a goal of 3% for the consumer price index, and a 5.5% unemployment rate for people in cities — with the creation of around 12 million new urban jobs. The work report called for implementing "prudent monetary policy" in a "targeted" way. Li presented the report Sunday at the opening of the National People's Congress, part of the annual "Two Sessions" parliamentary meeting.

☆ China to increase defense spending by 7.2%
▼ + stars: | 2023-03-05 | by ( Evelyn Cheng | ) www.cnbc.com time to read: +1 min

China's air force shows off its L15 Falcon trainer at the Zhuhai Air Show in 2022. BEIJING — China is set to increase defense spending this year by 7.2% to 1.56 trillion yuan ($230 billion), according to a draft released Sunday by the Ministry of Finance. China's defense budget grew by 7.1% last year to 1.45 trillion yuan, faster than the 6.8% increase in 2021 and 6.6% climb in 2020, according to official data. In 2019, China's defense spending rose by 7.5% to 1.19 trillion yuan. The work report called for "resolute steps to oppose 'Taiwan independence'" while sticking to Beijing's call for "peaceful reunification."

REUTERS/Thomas PeterSHANGHAI, March 5 (Reuters) - China's science and technology policies should aim to build the country's strength and self-reliance, while companies take the lead in pushing innovation, Premier Li Keqiang said on Sunday. The country effectively countered external attempts to suppress and contain China’s development over the past five years by promoting development of the real economy through innovation and fostering new drivers of growth, he said. President Xi Jinping has urged the country to strengthen its self-reliance in science and technology and continue to strive as a global tech power. The platform economy comprises China's largest tech companies, such as Alibaba Group (9988.HK) and Tencent Holdings (0700.HK). Such firms were the targets of a long, bruising regulatory crackdown that Beijing says it is now easing.

☆ China says armed forces should boost combat preparedness
▼ + stars: | 2023-03-05 | by ( ) www.reuters.com time to read: +1 min

BEIJING, March 5 (Reuters) - China's armed forces should devote greater energy to training under combat conditions and boost combat preparedness, Premier Li Keqiang said on Sunday. "Our armed forces, with a focus on the goals for the centenary of the People's Liberation Army in 2027, should work to carry out military operations, boost combat preparedness, and enhance military capabilities," he said in his work report to the opening of the annual meeting of China's parliament. "The armed forces should intensify military training and preparedness across the board, develop new military strategic guidance, devote greater energy to training under combat conditions and make well-coordinated efforts to strengthen military work in all directions and domains," Li said. This year's defence budget has yet to be released but is likely to come out later on Sunday when the government releases its overall 2023 budget. Reporting by Yew Lun Tian; Writing by Ben Blanchard; Editing by William Mallard & Simon Cameron-MooreOur Standards: The Thomson Reuters Trust Principles.

☆ China says should advance 'peaceful reunification' with Taiwan
▼ + stars: | 2023-03-05 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Dado Ruvic/IllustrationBEIJING, March 5 (Reuters) - Chinese Premier Li Keqiang said on Sunday the government should promote the peaceful development of relations with Taiwan and advance the process of China's "peaceful reunification" but also take resolute steps to oppose Taiwan independence. In August, China staged war games around Taiwan in response to a visit to Taipei by then-U.S. House Speaker Nancy Pelosi. Speaking at the opening of the annual meeting of China's parliament, Li said Beijing stands by the "one China" principle, which states that Taiwan is part of China. The government should implement our party's policy for "resolving the Taiwan question" and "take resolute steps to oppose Taiwan independence and promote reunification", he told the roughly 3,000 delegates at Beijing's enormous Great Hall of the People. "We should promote the peaceful development of cross-Strait relations and advance the process of China's peaceful reunification."

☆ China Sets Conservative Growth Target as Challenges Loom
▼ + stars: | 2023-03-04 | by ( Stella Yifan Xie | ) www.wsj.com time to read: 1 min

Premier Li Keqiang announced China’s growth target at the start of the country’s annual legislative session Sunday. HONG KONG—China unveiled its lowest growth target in more than a quarter-century as Beijing faces challenges in the domestic and global economy following its emergence from three years of strict Covid-19 measures. China’s target of around 5% growth this year in gross domestic product, announced on Sunday by Premier Li Keqiang at the start of the country’s annual legislative session, suggests that officials are less concerned about raw economic expansion as they turn their attention to other priorities.

☆ China Sets Economic Growth Target of Around 5% for the Year
▼ + stars: | 2023-03-04 | by ( Stella Yifan Xie | ) www.wsj.com time to read: 1 min

Premier Li Keqiang announced China’s target at the start of the country’s annual legislative session. BEIJING—China set an economic growth target of around 5% for the year, the lowest level in more than a quarter-century, as Beijing seeks to shake off the impact of the Covid-19 pandemic that knocked the economy off its growth target in 2022. China’s target, announced by Premier Li Keqiang on Sunday at the start of the country’s annual legislative session, was lower than the 5.5% gross domestic product growth target set by Beijing last year.

Hong Kong CNN —China has set an official economic growth target of “around 5%” for 2023, as it seeks to revive the world’s second largest economy after a year of tepid growth because of pandemic measures. The new figure was released Sunday alongside the opening of the annual gathering of the National People’s Congress (NPC), the country’s rubber-stamp legislature, in a government work report. Chinese Premier Li Keqiang speaks during the opening session of China's National People's Congress (NPC) at the Great Hall of the People in Beijing, Sunday, March 5. Ng Han Guan/APMoody’s Investors Service has since raised its China growth forecast to 5% for both 2023 and 2024, up from 4% previously, citing a stronger than expected rebound in the short term. Global growth will likely slow from 3.4% in 2022 to 2.9% in 2023.

☆ China's economy, government revamp in focus as parliament set to open
▼ + stars: | 2023-03-04 | by ( Tony Munroe | ) www.reuters.com time to read: +3 min

REUTERS/Thomas PeterBEIJING, March 5 (Reuters) - China opens its annual parliamentary session on Sunday, with the National People's Congress (NPC) set to implement the biggest government shakeup in a decade as Beijing confronts a host of challenges and looks to revive its COVID-battered economy. During the NPC, former Shanghai party chief Li Qiang, a longtime Xi ally, is expected to be confirmed as premier. "We might see institutional changes that indicate an elevated importance of, and more party control over, the financial regulatory system," Goldman Sachs analysts wrote. On the opening day of the NPC, China is also likely to announce its central and military spending budgets. Reporting by Tony Munroe; Editing by Himani SarkarOur Standards: The Thomson Reuters Trust Principles.

☆ Exclusive: China increasingly ambitious with 2023 growth target, may aim for up to 6%
▼ + stars: | 2023-03-02 | by ( Kevin Yao | ) www.reuters.com time to read: +5 min

Four of the sources said China was likely to aim for growth up to 6%, while three others said China was targeting 5%-5.5%. "This year's growth target could be 5-6%," said one of the people involved in the discussions. "We need to achieve an economic recovery, boost employment, and confidence, these are the key factors we need to consider." It was also the biggest ever miss of a growth target. Yu said a growth target of above 6% would help "boost morale and stimulate China's economic growth potential."

☆ Analysis: Cash-strapped countries face IMF bailout delays as debt talks drag on
▼ + stars: | 2023-03-02 | by ( Jorgelina Do Rosario | ) www.reuters.com time to read: +7 min

IMF funding is often the sole financial lifeline available to countries in a debt crunch, and key to unlocking other financing sources, with delays putting pressure on government finances, companies and populations. Though staff agreements can be reached without financing assurances, the IMF board needs them to approve the programme. Chinese Premier Li Keqiang said on Wednesday the country is willing to "constructively" participate in solving debt problems of relevant countries under a multilateral framework. But Beijing has always emphasised all creditors should follow the principle of "joint action, fair burden" in debt settlements. Adding another layer of complexity to these debt talks, the Common Framework doesn't lay out precise rules on how a debt restructuring with bilateral creditors should work.

☆ China says its official bilateral loans are less than 5% of Ghana debt
▼ + stars: | 2023-03-02 | by ( ) www.reuters.com time to read: +1 min

March 2 (Reuters) - China's official bilateral loans involving Ghana account for less than 5% of the West African country's total debt, the Chinese foreign ministry said on Thursday. Multilateral and commercial debt account for the vast majority of Ghana's external debt, ministry spokesperson Mao Ning said at a regular press briefing. Germany's finance minister recently singled out China during a visit to Ghana, as he called on countries that have lent to the embattled nation to form a creditor committee quickly to help it restructure its debt. China has been consistent in criticising multilateral lenders for not taking haircuts on loans extended to debtor countries while Beijing is being asked to do so on credit it has extended bilaterally. Ghana owes China $1.7 billion, according to the International Institute of Finance, a financial services trade association focused on emerging markets.

☆ Meet the 4 men tipped to run China’s economy
▼ + stars: | 2023-03-01 | by ( Laura He | ) edition.cnn.com time to read: +8 min

Hong Kong CNN —The team of Communist Party officials running China’s economy is about to get a major makeover. They include the four men tipped to manage the world’s second biggest economy: Li Qiang as premier, Ding Xuexiang as executive vice premier, He Lifeng as vice premier and Zhu Hexin as the new central bank chief. That puts the 63-year-old in line to succeed Premier Li Keqiang when he steps down during the upcoming congress. Li would be the first premier since the Mao era not to have previously worked at the State Council, China’s cabinet, as vice premier, analysts say. Stringer/ICHPL Imaginechina/AP/FileThe 68-year-old would succeed Vice Premier Liu He, who led China’s negotiations with the United States during trade talks in 2018 and 2019.

[1/4] A worker walks across a construction site in the Central Business District, ahead of the opening of the National People's Congress (NPC) in Beijing, China, February 28, 2023. Nearly 3,000 delegates will gather in the Great Hall of the People west of Tiananmen Square for the first National People's Congress (NPC) of the post-zero-COVID era, although some precautions remain including testing and quarantine for journalists. It will also discuss Xi's plans for an "intensive" and "wide-ranging" re-organisation of state and Communist Party entities, state media reported on Tuesday, after a three-day meeting of the party's central committee. China's economy grew just 3% last year, one of its worst showings in nearly half a century. "We will strive to spur growth and have policy tools to do that, mainly by channelling money into big projects," Xu Hongcai, deputy director of the economic policy commission at the state-backed China Association of Policy Science, told Reuters.

☆ China willing to play constructive role in debt talks
▼ + stars: | 2023-03-01 | by ( ) www.reuters.com time to read: +1 min

BEIJING, March 1 (Reuters) - China is willing to "constructively" participate in solving the debt problems of relevant countries under a multilateral framework, its Premier Li Keqiang said on Wednesday. China, the world's largest bilateral creditor, has criticised multilateral lenders for not accepting losses, or haircuts, on loans to low-income countries while Beijing is being asked to do so on credit it has extended on its own. In a phone call with International Monetary Fund Managing Director Kristalina Georgieva, Li said that solving the debt problems of low-income countries requires the participation of all creditors, according to a China State Department statement. China is a major lender to high-debt countries, such as Ghana and Zambia. Reporting by Meg Shen and Ryan Woo Ediing by Tomasz JanowskiOur Standards: The Thomson Reuters Trust Principles.

[1/7] Farmer Wang Zhanling sits next to his wife in their house in Quansheng village, Heilongjiang Province, China, February 8, 2023. The state-run Chinese Academy of Sciences sees the pension system running out of money by 2035. "If the pension system does not change, this is unsustainable," said Xiujian Peng, senior research fellow in the Centre of Policy Studies at Victoria University in Australia. The province has the lowest birth rate in China, with just over 100,000 births in 2021 and 460,000 deaths. Many experts, including Macquarie's chief China economist Larry Hu, suggest implementing a unified national pension system, backstopped by the more resourceful central government rather than cash-strapped local administrations.

☆ Mudslide disrupts rescue of 53 missing in China mine collapse
▼ + stars: | 2023-02-23 | by ( ) www.cnbc.com time to read: +2 min

A mudslide has disrupted rescue operations at a coal mine collapse in China's Inner Mongolia region that killed at least two people, injured six and left more than 53 people missing, state media reported on Thursday. The collapse happened on Wednesday at an open-pit mine in the Alxa League operated by Xinjing Coal Mining Co.After the collapse, President Xi Jinping ordered search and rescue efforts, state media reported. "We must make every possible effort to rescue the missing persons and treat the injured," Xi said. Before the mudslide, four rescue teams of 109 people were searching for the trapped miners, state media reported. Authorities also sent 238 firefighters, 41 fire trucks and six rescue dogs to join the rescue and more teams of about 200 people were expected to arrive on Thursday, state media said.

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