China’s slowing economy will be at the forefront as parliament convenes for its annual meeting this week, with a weekend interest rate cut a reminder of the challenge of balancing painful restructuring with combating the onset of deflation.
Senior leaders at the National People’s Congress, which opens on Thursday, will send an unambiguous signal about the extent of the slowdown when they cut this year’s GDP growth target to around 7 percent, which would be the lowest growth in a quarter of a century.
“The focus will be on state-owned enterprise reforms, price reforms and fiscal reforms,” said Wang Jun, a senior economist at the China Center for International Economic Exchanges, a well-connected think-tank in Beijing.
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