Fighting “growth cancer”. China is preparing for a more difficult year and the fight against deflation

The Chinese authorities will probably set this year's economic growth target in the range of 4.5 to 5 percent. – the South China Morning Post, published in Hong Kong, revealed on Friday, citing sources. The new range is intended to signal Beijing's tolerance for a slowdown in GDP growth.

According to the newspaper's sources, the adoption of ranges instead of a rigid reference point is intended to provide the government with flexibility in the face of the uncertain global macroeconomic environment.

The daily's sources explained that policymakers want to avoid excessive pressure on local officials and are therefore promoting “the right concept of political performance” and “high-quality development” instead of treating the GDP growth rate as the main criterion for assessing personnel. At the same time, there is agreement in government circles on the fight against deflation, which decision-makers were to call a “cancer of economic growth”.

One of the newspaper's interlocutors emphasized that the lower limit of 4.5 percent. sets the minimum level of growth necessary to achieve the country's long-term goals, scheduled for completion in 2035. The official plan will be announced in early March during the annual session of parliament.

For the past three years, Beijing has maintained the target at “around 5 percent”, but at the end of 2025 the economic growth rate has significantly weakened.

The Chinese economy is currently facing a prolonged crisis in the real estate market, weak domestic demand and the risk of new US tariffs that may hit the country's export opportunities.

Krzysztof Pawliszak (PAP)

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