Discussing China's growth target and economic strategies, challenges in technology investment, market outlook by Ron Temple, and AI investments' impact on corporations.
China's strategic focus on science and technology funding to drive economic growth with over $1 trillion in special central government bonds.
Emphasis on boosting private sector support, consumption, and software development to overcome challenges in semiconductor industry and AI advancement.
Deep dives
China's Infrastructure Funding with Government Bonds
China plans to issue over half a trillion dollars in special local government bonds, aiming to fund infrastructure projects and boost economic growth. Additionally, the unveiling of one trillion dollars in ultra-long special central government bonds, with a significant portion allocated to science and technology research and development, indicates a strategic focus on key areas for growth.
Economic Growth Targets and Stimulus Measures
China's target of 5% GDP growth is ambitious amidst challenging comparisons from the previous year. To achieve this, policymakers may need to roll out stronger and quicker stimulus measures, especially with the 2024 target being more difficult to reach. Initiatives like faster legislation to support the private sector and a year-long push for consumption are crucial for boosting the economy and creating urban jobs.
Challenges and Strategies in Semiconductor Development
China faces challenges in developing a competitive semiconductor industry to match the West. While export controls impact AI advancements, China's emphasis on producing engineers and investing in research signifies a long-term commitment. The software sector offers easier growth opportunities, aligning with China's focus on domestic technology and internet business development for future global leadership.
Featuring: Rebecca Choong Wilkins, Bloomberg Asia Government & Politics Correspondent, joins the program to discuss China's growth target and other announcements coming out of the National People's Congress.
Robert Lea, Bloomberg Intelligence Senior Analyst, takes a look how AI and technology will be ruled on at China's NPC meeting, and how it will influence China's economy.
Ron Temple, Chief Market Strategist at Lazard Asset Management, sits down with us to share his perspective on APAC markets and China's market outlook.