China shifts cadre-appraisal metrics away from pure GDP growth, resetting mindsets


Ahead of China’s annual legislative meetings – typically a window into Beijing’s top-level policy agenda – this is the first entry in a series examining the complex economic recalibration driving China’s growth philosophy and its wide-ranging implications for local governments, financial investors and private enterprises.

Beijing’s forceful campaign to instil a “correct” understanding of tenure performance among party cadres may signal Chinese leaders’ determination to downplay headline growth figures and move away from the “at-all-costs” development model, according to analysts.

The five-month education campaign, particularly targeting local cadres such as provincial governors and mayors, was initiated on Monday, a day before officials returned to work following the Chinese New Year holiday.

A notice from the Communist Party’s General Office ordered officials to “accurately and resolutely” implement President Xi Jinping’s high-quality-development directives for a strong start to the nation’s 15th five-year plan (2026-2030) and do work that “benefits the people”.

A Xinhua article on Wednesday discussed how Xi led the party to implement “correct tenure-performance concepts”.

“A flawed view of political achievements stems from personal or small-group interests, leading to short-sightedness; a desire for quick success and instant wins; deception; and reckless actions, resulting in ‘image projects’ and ‘political achievement projects’ that leave behind burdens and hidden dangers, causing strong public resentment,” the piece said.

According to Zhou Zheng, a senior analyst with the China Macro Group consultancy, the campaign “now aims for a mind reset for officials”.

“The message is that Beijing’s definition of good performance – and hence the appraisal of cadres when their stints end – is based on not just gross domestic product,” Zhou said. “Equally important are employment, people’s livelihood and consumption.”

Zhou added that the top leadership had grown weary of the frivolity of chasing GDP growth and all of the subsequent problems.

What should officials do if GDP targets are not scrapped?
Political scientist, Beijing

For decades, an exclusive focus on GDP as the primary performance benchmark drove local officials to prioritise economic expansion, often at the expense of other development aspects, helping elevate the Chinese economy to the world’s second largest, trailing only the United States.

Seeking personal advancement, some even sought to manipulate GDP figures, while local governments accumulated unsustainable debt to launch projects. Extravagance, with lavish public spending; formalism, prioritising appearances over genuine results; and bureaucracy, marked by rigid rules and inefficiency, also permeated Chinese officialdom.

In recent years, Beijing has moved to address rampant data manipulation and wasteful investments. It also vowed to curb the expansion of local government debt, in the interest of safeguarding financial stability.

China’s economy is now relying more on domestic consumption and tech innovation, rather than solely on investment projects, for growth.

Doubts remain, however, as many observers remain cautious about changes at the policy-implementation level.

“Telling them to change their mind is one thing, updating promotion rules and values is another,” said a Beijing-based political scientist who requested anonymity because of the matter’s sensitivity. “What should officials do if GDP targets are not scrapped?”

Some key localities have been quick to respond to Beijing’s new directives.

On Tuesday, officials in China’s eastern province of Zhejiang were informed at a meeting that residents’ income growth and public service quality would carry more weight in their annual appraisal, according to the Zhejiang Daily.

Several provinces have already lowered their 2026 growth targets.

While China hit its 5 per cent growth target for 2025, long-standing issues – from stimulating domestic demand to unwinding a local government debt crisis – have laid bare the limitations and unsustainability of the old growth model.

The South China Morning Post reported in January that China was expected to announce a lower growth target for 2026 – between 4.5 and 5 per cent – during the upcoming “two sessions” parliamentary gatherings. -- SOUTH CHINA MORNING POST

 

 

 

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