China on course for 2017 growth target

China appears set to achieve or exceed its 2017 growth target after stronger-than-expected growth in the second quarter.

China’s gross domestic product (GDP) grew by 6.9 per cent in Q2 according to China’s National Bureau of Statistics, the second consecutive quarter it has grown by 6.9 per cent. Analysts see the result as a clear sign that China is on course to meet – or possibly exceed – its growth target of 6.5 per cent for 2017.

China’s growth was driven mostly by stronger export and production, in particular steel. US President Donald Trump said last week that he will consider quotas and tariffs to deal with Chinese steel. During his presidential campaign he repeatedly accused China of flooding the US with artificially cheap steel and undercutting local suppliers.

From a political perspective, the growth numbers come at a time when China’s President Xi Jinping continues to position China as the champion of free trade. In autumn this year, the Chinese Communist Party (CCP) will meet to appoint the new senior leadership of the party. President Xi will undoubtedly begin his second five-year term as General Secretary of the CCP with a strong economic tailwind.