What China's new economic growth targets tell us

On 5th March, Premier Li Keqiang presented the key growth targets and strategies for 2016 and the 13th Five Year plan (2016-20) during China's "Two Sessions". For the first time ever, the Chinese government announced a range target – rather than a point target – of 6.5-7% for 2016 GDP growth. The target for fiscal deficit has also been raised significantly. How will the government address the increasingly tenuous trade-off between economic growth and reforms? In this Inform we highlight the key takeaways from the government announcements, and discuss the implications on our China GDP view.