China’s new leaders have adopted a greater tolerance for a slowdown in the economy than their predecessors and are likely to allow quarterly growth to slip as far as 7 percent before triggering fresh stimulus to lift activity, sources say.
The government of President Xi Jinping and Premier Li Keqiang has flagged for some time that the rapid GDP growth of the past three decades needed to shift down a gear as the economy moves towards consumer-led expansion.
But it was not clear where Xi and Li would draw the line in the sand, leaving financial markets guessing over how the government would respond to successively weak economic data.
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