What should we make of the lower growth target?

The inclusion of a lower growth target in the new Five-Year Plan is a simple acknowledgement that growth will slow as China’s pool of surplus rural workers dries up. The call for better quality growth – meaning that its benefits should be more widely shared – is perhaps more interesting and has particular resonance given the current turmoil in North Africa. If the government followed through, one effect would be a faster pace of economic rebalancing.