Premier Li Keqiang’s government sees 7 percent growth as the bottom line for tolerance of an economic slowdown, Chinese news organizations reported, signaling the nation will act to support expansion if needed.
Expansion below 7 percent won’t be tolerated because China needs to achieve a moderately prosperous society by 2020, according to a commentary published July 21 by the official Xinhua News Agency and credited to reporter Wang Yuewei. Li said at a recent meeting with economists that 7 percent is the “bottom line” and the nation can’t allow growth below that, the Beijing News reported today.
Chinese stocks headed for their biggest gain since July 11 amid optimism that the government won’t let expansion slow too much after gross domestic product rose 7.5 percent in the second quarter from a year earlier, the same pace as China’s official target for this year. Li previously said the government shouldn’t let growth and employment fall below lower limits that he didn’t specify.
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