China's Politburo recalibrates policies and sets growth targets for 2024

China's Politburo has signaled a course correction in policy, favoring a more cautious approach to stabilize the economy and avoid disruptions. The statement from the Politburo meeting sets the tone for economic priorities in 2024, emphasizing progress while maintaining stability and establishing the new before abolishing the old. Analysts suggest that this step-by-step approach aims to tackle structural problems and stabilize expectations. Lessons learned from previous green initiatives and rushed campaigns have prompted a more measured and prudent approach to issues such as decarbonization, common prosperity, and local government debt. The focus will be on making reforms more measured and stepwise, with sound planning, to avoid a fickle policy environment that concerns private and foreign firms.