China’s Economy 2016/17: Seeking Growth with Stability Amidst External Uncertainty

China's economy ended 2016 with 6.7% growth. It formally ended its era of double-digit growth in 2012 with 7.7%. China has managed growth deceleration remarkably well by letting it slide gradually. This was achieved mainly by the government's pro-growth policy intervention through expansionary fiscal and monetary policies. The government has recently refocused its macroeconomic policy from demand-side management to supply-side structural reforms, giving priority to reducing over-capacity and de-leveraging. For 2017, growth is expected to slow to 6.5% due to great uncertainties including the potentially hostile US economic policies of President Trump.