Beijing now hopes tax cuts and increased lending can stimulate consumer spending.
Premier Li Keqiang has warned the National People's Congress that China may be in for stormy weather, saying the economic situation is unpredictable. So, that means tax cuts and higher debt, DW's Frank Sieren writes.
An order to shut down thousands of bankrupt state-run firms is being ramped up just as the economy slows to a 30-year low. China's leaders fear that a huge wave of layoffs could fuel social unrest.
China faces a "graver and more complicated environment" with risks that "are greater in number and size," the National People's Congress has been told by Premier Li Keqiang. Spending on the military is being increased.
Despite the annual legislative session being a largely ceremonial gathering, many will watch for cues on how Chinese policymakers intend to boost the nation's flagging growth and overcome the trade row with the US.
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