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China’s NPC meeting: The way back to normal

En bref

On March 5, the annual meeting of the National People’s Congress (NPC) will start and set the economic and political goals for this year. The NPC is China’s highest national legislature with just short of 3000 people. The session typically lasts for 10 days.

Highlights:

  • Beginning on March 5, the annual meeting of China’s National People’s Congress will set China’s economic and political agenda for 2021.
  • We expect policy to withdraw some of its support, with the main negative impulse coming from fiscal policy. Monetary policy will normalise only cautiously, in our view. We expect no explicit growth target to be set for this year.
  • The new Five Year Plan (FYP) is likely to promote the targets of the recent Dual Circulation Strategy, e.g. improving private consumption, getting more independent from international supply chains and fostering technological advancement. Another topic will be the greening of the economy.

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China’s NPC meeting: The way back to normal
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