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Macro Comment ChinaDoes the more powerful Xi dare lower the growth target?

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China's national legislature, the National People's Congress, will convene in early March to elect new state leaders and decide on new economic targets and reform areas. There is little doubt that Xi Jinping will re-main in charge for another five-year term and also most likely beyond that. We foresee an unchanged growth target, but expect the rhetoric surrounding the target to pave the way for gradually slowing growth ahead. The Congress will also shed further light on the coming years' policy priorities, which include fighting overcapacity, pollution, and financial risks.

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Bjarke Roed-Frederiksen

Senior Economist

Latin America and China

bjro03@handelsbanken.dk

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