Addressing the plenary session of National People’s Congress on March 18, Premier Li Keqiang heralded surprise shift in the way China is going to implement her business strategy for 2021 onward for five year period ending 2025.
Firstly, it is the pruning of the GDP growth. In halycon days in the last four decades beginning 1979 till 2019, China averaged 9.5 % growth as indicated by the World Bank. Due mainly to Covid-19, the growth registered in 2020 plummeted to a mere 2.3% of GDP. Even though IMF expects China to rebounce to 8.1%, the Premiere sounded conservative while informing the 3000 delegates of the highest national assembly, that he expects the economy to grow 6%.
This is startling because the IMF is much more cautious than any other institutions in predicting economic growth. The Premiere went on “The target is not set on stone; it intends to guide expectations neither low nor high. The target should be fully adapted with the possibilities and conditions of what we can accomplish in this year (2021) and years after”
Speaking further Li Keqiang warned “We must avert wild swings in economic progress because it will de-anchor market expectations. A growth too fast may not be a steady one. What we need is a steady pace that sustains China’s development for the long run.”
Adding a punch line the Premiere gave assurance to the domestic audience on one hand and veiled threat to western nations that seek to de-stabilize China on the other by declaring “What we hope for China as a big economy is sustained and sound growth in long term”
Sounds familiar? Yes indeed it was Sun Tzu who said, “Engage people with what they expect; it is what they are able to discern and confirms their projections. It settles them into predictable patterns of response, occupying their minds while you await for the extraordinary moment- that which they cannot anticipate”
China plays the long game with USA and EU to say the least!
Cheers!
Muthu
Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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