China Begins to Recalibrate it Economy.. Again

Sunday, June 2, 2013 7:07
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One of the greatest shows on earth is under new management, and if you believe everything you read in the the WSJ, then the article Beijing Issues List Of Planned Overhauls is one that you should view as Beijing’s announcement that they are getting ready to recalibrate its economy for the second time in a decade.  The first recalibration being the decoupling of its economy from exports to one coupled to domestic investment.

An economy that needs to make the final leap.:

China outlined the overhauls it wants to push ahead with this year, from faster urbanization to controversial property taxes, as its new leaders try to show they’re serious about speeding economic reforms amid slowing growth.

While the lengthy list was short on details, and many of the goals were policy restatements, it was a clear guideline to government priorities for the year and suggested authorities are acutely aware of public expectations.

[…] China’s leaders have long discussed the importance of reforms to put growth on an even keel, including many of the items in the latest statement. But progress so far has been limited, partly because powerful interests from state owned enterprise to local government and real estate developers are ranged against changes to the status quo.

A change in leadership has raised hopes that further progress will be made, with expectations focused on a key meeting of China’s top leaders in the October. But so so far details on how reforms will be implemented and paid for are in limited supply.

 

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