Slide towards centralisation

China unveils a new government and an altered economic strategy

At the recently concluded National People’s Congress (NPC), China unveiled a new government and announced important shifts in its economic strategy in response to a more uncertain international economic environment and a slowdown in domestic drivers of growth. For an export- and investment-led economy, the persistent slowdown in global economic growth, the retreat from open markets, and the denial of access to high technology such as semi-conductors are significant retardants. There are structural factors at work, such as a declining and ageing population, the prospect of slower growth as the economy matures, and the persistent imbalance between investment and consumption