China has set its most modest growth target since 1991, signaling a fundamental shift in its economic strategy. The government's acknowledgment that the old growth model is faltering reflects deep structural challenges facing the world's second-largest economy. This marks a significant departure from decades of aggressive expansion targets.

For four decades, China's rapid rise was powered by investment-led growth, manufacturing dominance, and export-driven expansion. However, mounting debt, demographic headwinds, and trade tensions have exposed the limitations of this approach. The new target represents a tacit admission that the previous growth formula is no longer sustainable.

The implications extend far beyond China's borders. As the global growth engine recalibrates, international markets face uncertainty about future demand and commodity prices. The shift also raises questions about China's ability to maintain social stability and employment levels with slower growth. This strategic pivot could reshape global economic dynamics for years to come.