Bye, bye China 'stimulus put'

From the AFR:

China’s incoming Premier Li Keqiang has said the country needs just 7 per cent annual growth to achieve an “affluent society” by 2020, suggesting the country’s new leaders won’t roll out a big-spending stimulus package to bolster the economy.

He said China would not pursue “one-sided GDP growth” and development would be at a “medium speed” in the long term. He also said the redistribution of wealth would require a bigger role for the market in allocating resources, reviving hopes of financial reforms.

The comments were released to state-run media early on Friday morning.

Bye, bye China ‘stimulus put’. Hello long term commodity correction.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.