Shanghai Abandons GDP Target; Dept Name Change Signals Focus on Local Debt

From last week: 70 cities and counties abandon GDP targets
Shanghai has ditched its official economic growth target for 2015, becoming the first major city or province in China to abandon such metrics as government policy shifts towards a focus on growth quality over quantity.

The move signifies both a nationwide move to switch focus from hitting annual targets with some of the fastest growth rates in the world — now that those rates are waning — as well as an effort to de-link growth from promotions at the local level.
China is moving away from GDP targeting as part of the shift away from the "GDP at all costs" model that has devastated the environment and generated mountains of debt used to fund unprofitable investment.

This week, China renamed the budget department's local debt management office. It is now the office of government debt management. The shift is part of a move to get a better handle on local debt by widening the types of debt that will fall under its supervision.

Economic Observer: 预算司政府债务管理处去掉“地方”和“性”意味着什么?

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