China GDP: How Low Can it Go Without Sparking Unrest?

The government of China is willing to tolerate growth as slow as 7 percent, signalling it will act to support expansion if needed, Beijing News reported yesterday. To achieve a “moderately prosperous” society by 2020 Premier Li Keqiang said at a meeting with economists this week that the rate would be the “bottom line” and the nation could not allow any slower pace, the Beijing News reported. Meanwhile, a commentary published by Xinhua news agency said expansion below that rate would not be tolerated because China needs to achieve a “moderately prosperous” society by 2020. Hong Kong-based Barclays economist Chang…