Highlights
On Sunday, China’s National Development & Reform Commission reported to the annual meeting of parliament the broad goals and plans for the year ahead. Since China is the #2 economy in the world and seeks to become #1 economy and it is a major trade partner for most countries of the world, whatever China plans to do is important.
China’s 2023 goal is for the economy to expand by ~5%, which is a half percent lower than last year's target. Actual growth in 2022 was just 3%. China will take steps to minimize risks in the real estate sector, intensify its push to make China self-reliant in technology and the central bank will provide 'forceful' support for economic development (easy money). Defense spending will be increased by 7.2% to boost combat preparedness (Taiwan).
Any time a country plans to increase defense spending more than GDP growth (the measure of economic growth), it is an “attention getter” for all world leaders.