China braces for slower growth

President Xi Jinping has given no indication that steps will be taken to revive the slowing economy. Speaking at the Third Plenum, held every five years in China, President Xi Jinping promised “high-quality development” but gave no indication that steps will be taken to revive the slowing economy. At the close of the meeting, which usually heralds major policy changes, the ruling Communist Party announced that it will stick to Xi’s plan for growth through advanced manufacturing. The focus on manufacturing comes as rising Chinese exports have led the U.S. and European Union to impose new tariffs and escalate trade tensions. “There continues to be a strong emphasis on high-quality growth. This means that there is still tolerance for a period where growth will slow down a little bit more,” said Becky Liu, head of China macro strategy at Standard Chartered, predicting that the bar for implementing economic stimulus will remain high in the short term.