U.S. stocks and markets all of the world slid today after China lowered its annual growth rate. The Chinese Premier Wen Jiabao lowered the target for China’s economic growth, this reinforces the idea that China needs to make their economic development more sustainable to avoid a crash. The Chinese government is now aiming for 7.5% growth in 2012 instead of the 2011 goal of 8%, though it should be noted that the Chinese economy exceeded its goal last year by growing 9.2%. The are some concerns that the easing of China’s monetary policy that was designed to maintain growth while controlling inflation is not working.
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