Xi-Biden call; Politburo meeting; Taiwan; Chip corruption
Vacation notice: I am going to my version of Beidaihe starting next week, though actually a staycation, as not much happens in the PRC in the first two weeks when the leadership mostly disappears from public view. If something interesting does happen you will hear from me.
Summary of today’s Essential Eight items:
Politburo meeting - From the readout it is clear the leadership has given up on the 5.5% GDP target, without saying so explicitly. Dynamic zero-Covid is here to stay for the foreseeable future. Some more fiscal and monetary stimulus may be forthcoming, as will more infrastructure investment. There may be some tweaks to real estate policies, specifically to ensure homes under construction are completed and likely more room for city-by-city adjustments, but they are not opening the floodgates from a policy or financial perspective. The rectification of the "platform economy" is to be completed and policymakers will "roll put a batch of "green-light" investment cases", but enhan…