China GDP : A Glass Half Full? Wall Street Bullish on Beijing But Geoeconomic Risks Linger

According to government estimates published earlier today, China’s economy expanded by 3.0% in 2022, far below the official growth rate of 5.5% initially targeted by Beijing – but still more than G20 average for the year, and, more importantly, higher than recent forecasts made by the IMF, World Bank, and Wall Street economists (expecting around 2.5% GDP growth for PRC in 2022).Today, despite the sometimes-chaotic loosening of Covid-related travel restrictions which came into force 10 days ago, and despite the persistently fragile real estate sector, and pent-up bad loans” sitting on the balance sheets of the nation’s four big public banks (also the world’s largest financial institutions), most market strategists (including e.g., Citi, Goldman Sachs etc.) appear to be bullish on China, forecasting solid gains for Chinese (listed) equity investors in 2023 and beyond.The "Biden Doctrine" may reduce China’s room for maneuverer going forward … But the Politburo of the Chinese Communist Party has been preparing quietly for “Cold War 2” (at least) since October 2011 (Hillary Clinton’s thwarted ‘Pivot to Asia’ ambition)The new PRC cabinet, which will take over in March 2023, has received a very clear mandate from the 20th Party Congress: premier-elect Li Qiang, China’s fist MBA prime minister, will be playing for keeps