Wall Street Journal has a classic article on the deliberations at the National People’s Congress. The key sentence in that article is this:
Mr. Li called for a “balanced” monetary policy, in a change from the “prudent” monetary policy used last year. [Link]
That alone gives the game away. Push comes to shove, rebalancing is secondary. It is not new. It has been the case ever since Wen Jiabao said that the economy was unbalanced, uncoordinated and ultimately unsustainable. There has been plenty of talk and not much action, if at all.
The Bloomberg news-item on the NPC deliberations does not mention this subtle yet important shift in the direction of monetary policy likely in 2014. But, it quotes Stephen Green of Standard Chartered:
A 7.5 percent growth target indicates that officials “are much readier to loosen policy if we see further evidence of slowing,” said Stephen Green, head of Greater China research at Standard Chartered Plc in Hong Kong. [Link]