The War In Ukraine Seems To Have Reached An Impasse, The Goal For This Year For China Is To Increase GDP By 5%
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After more than a year of war, the situation seems to be at an impasse, and the current signals from Bakhmut are not clear. The markets are focused on economic objectives that have been outdone by the second largest economy in the world.
In this article:
- The war in Ukraine
- Two Sessions
The war in Ukraine
The war in Ukraine appears to have reached a stalemate, with Russian forces reporting some gains in eastern Donbass.
Bakhmut's status is unclear after conflicting reports over the weekend about how much of the city was controlled by Russian forces and whether Ukrainian forces had begun withdrawing from parts of the city.
Volodymyr Nazarenko, the commander of the Ukrainian troops in Bakhmut, said in Telegram Sunday that "there are no decisions or orders regarding retreat" and that "the defense is holding on"
However, analysts at the Institute for the Study of War think tank said on Sunday that Ukrainian forces appeared to be conducting a "limited tactical retreat" in Bakhmut.
ISW reported that Ukrainian forces may be withdrawing from their positions on the eastern bank of the Bakhmutka River, which crosses the eastern flank of the city. However, he added that while Russian sources claim that their forces have occupied the eastern, northern and southern parts of Bakhmut and claim to be reporting from positions in eastern Bakhmut, he cannot independently verify these claims.
Moreover, German Chancellor Olaf Scholz said on Sunday that Russia's complete withdrawal from Ukraine would be the basis for future peace talks. Scholz, like U.S. President Joe Biden, said Germany would support Ukraine "as long as necessary," but Berlin was criticized for delaying giving Kiev weapons, especially Leopard 2 tanks, which it had been asking for for months.
Time could be running out for Ukrainian forces in besieged Bakhmut; Russia turns to 'vintage' tanks https://t.co/hH9oeo83uu
— CNBC (@CNBC) March 6, 2023
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Two Sessions
"Two Sessions" is an annual parliamentary meeting that brings together delegates from all over China to discuss and approve national priorities, which includes the National People's Congress and the Chinese People's Political Consultative Conference, this year is short-lived and the goals they set are relatively briefly.
This year, the purpose of the meeting was to formalize the government titles for the new prime minister, deputy prime ministers and heads of ministries, as well as annual targets for GDP growth, inflation and employment.
China aims to increase GDP by "about 5%" in 2023, which may seem low given last year's 3%, which was the country's weakest performance in decades.
Moreover, China only repeated its commitments to increase household spending by raising incomes. The fiscal deficit is set at 3% of GDP this year, a marginal increase from 2022, and there are no plans for direct transfers to spur purchases.
At the same time, Beijing remains committed to reining in real estate speculation, which will limit the industry's ability to drive growth.
Among the events already announced, China's new foreign minister Qin Gang is due to hold his first press conference on Tuesday morning.
From Breakingviews - China gives itself easy GDP homework https://t.co/Y43VcTot8g
— Reuters Business (@ReutersBiz) March 6, 2023
