Off the record in Beijing: China’s growth rate is non-negotiable

Special to WorldTribune.com

By Willy Lam, EastAsiaIntel.com

Who is in charge of China’s macro-level financial and economic policy?

Posters of Chinese President Xi Jinping in Shanghai. Comments by an “authoritative figure” led to a 3 percent drop in the Shanghai Stock Index the same day. / Reuters
Posters of Chinese President Xi Jinping in Shanghai. Comments by an “authoritative figure” led to a 3 percent drop in the Shanghai Stock Index the same day. / Reuters

Most observers will say President Xi Jinping, who is head of the two highest-level decision-making bodies: the Central Leading Group on Finance and Economics (CLGFE) and the newly set up Central Leading Group on Comprehensively Deepening Reforms (CLGCDR).

Xi’s unchallenged role as economic tsar was confirmed by an article in People’s Daily on May 9, which quotes an “authoritative figure” as describing that the Chinese economy will go along an “L” shaped trajectory for a reasonably long period.

The “authoritative figure” – who most likely is Liu He, the top advisor to Xi and Head of the General Office of CLGFE – pointed out it was a mistake to use artificial means such as government cash injections to prop up GDP growth. … This anti-stimulus message by the “authoritative figure” led to a 3 percent drop in the Shanghai Stock Index the same day.

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