03 April 2012

Editorial: Goodbye Bao Ba

By diplomat_admin

Since 2005, China’s central government has set a growth target of 8 percent, a reflection of a long-standing policy of “bao ba,” or, “protect the eight.” Eight, besides being a lucky number in China, is the government’s assumed minimum rate necessary to create adequate jobs and maintain social stability. This has been an easy target, with growth rates (according to the World Bank) easily exceeding 8 percent since 2000 (peaking at 14.2 percent in 2007). 

However, this year, at the opening of the National People’s Congress on March 5, Premier Wen Jiabao’s annual work report deviated from this long-standing target with a new growth target of 7.5 percent. He called on China to focus on more sustainable development, including encouraging domestic consumption and managing inflation.
Read the full story at The Diplomat