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Daniel Moss

The Real Taper Tantrum Should Be Happening in China

For all the worries about rising yields in the U.S., Beijing’s policy makers are sending a strong signal that stimulus has its limits.

Everything appears to be in order.

Everything appears to be in order.

Photographer: LEO RAMIREZ/AFP

For all the concern that the U.S. economic recovery from the pandemic will run too hot, an equally big risk may be that China's aspirations are too modest. 

Premier Li Keqiang unveiled a growth target Friday of “over 6%” for this year, much slower than many economists’ predictions. China’s fiscal expansion will be pruned, with the budget deficit projected to be around 3.2% of gross domestic product, down from more than 3.6% in 2020. Quotas on bond sales by provincial governments have been trimmed.