China's growth target for 2023 underwhelmed investors, economists and analysts looking for clues about how President Xi Jinping's officials will run the world's second-largest economy, Matt writes.

Why it matters: The modest growth goals suggest China's economy may continue to weigh on global GDP this year, as the nation tries to put its COVID-related slowdown behind it.

Driving the news: During the weekend's opening of the largely ceremonial annual session of the National People's Congress — China's legislature — party officials set their target for 2023 GDP growth at "around 5%," and failed to introduce large stimulus plans as some had expected.

Background: In 2022, China fell far short of its target of 5.5% economic growth.

• Hampered by the impact of the government's strict zero-COVID policies, its economy expanded by just 3% in 2022, its slowest rate of growth since 1976.

Between the lines: The news set off a slump in some China-sensitive commodities, suggesting investors had expected a stronger commitment from policymakers to use traditional tools like big spending on infrastructure projects to boost growth.

What they're saying: "The fact that policymakers missed the 'around 5.5%' growth target in 2022 might be one consideration behind the relatively unambitious growth target this year," Goldman Sachs analysts wrote.

• "Non-boom China growth won’t be enough to keep the global economy from sliding into recession this year," Piper Sandler analysts wrote.
• "The growth target suggests the authorities will not go hell-for-leather to boost the economy after a long period of weakness during the zero-COVID policy era," Capital Economics analysts wrote.

The big picture: How much China’s growth will slow in the coming years is a key question related to the direction of the country under the increasingly centralized leadership of President Xi — whose precedent-shattering tenure has been marked by a focus on restoring China to so-called great power status in the face of persistent economic headwinds.

• This week's National People's Congress marks the departure of Premier Li Keqiang, a pro-market technocrat who was China's top economic official for the last decade.
• Li Qiang, the former Communist party secretary of Shanghai best known for his close ties to Xi, is expected to succeed him. He's just one of a number of new faces Xi has put in charge of the economy.

The bottom line: China is in a period of flux, as geopolitical tensions with the West, domestic economic issues — like the struggling housing market — and declining demographics act as stiff headwinds to its economic recovery.

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American manufacturing growth started outpacing the rest of the world's growth at the end of last year — for the first time in recent memory, Axios’ Kate Marino writes.

The big picture: The reasons for the surprising flip-flop are primarily energy and COVID-related, according to the Atlantic Council GeoEconomics Center.

• Production of renewable energy equipment saw a big uptick in the U.S. last year, and oil exports soared, too.
• Also: Domestic production of medical equipment like masks, gloves and pharmaceuticals grew.

Meanwhile, China’s manufacturing growth was muted because of its zero-COVID policies, while the eurozone’s production has been impacted by higher energy prices.

• “While the rest of the world grew a little, the US surged,” the Atlantic Council wrote.

Details: The chart shows the difference between the U.S. and the world's (excluding the U.S.) industrial production year-over-year percent change. The Atlantic Council calculations are based on data from the Federal Reserve Bank of Dallas.

What’s next: The Fed's rate-hiking campaign could still slow down manufacturing, as the WSJ reports.

• But, but, but: One potential tailwind is the Inflation Reduction Act's massive incentives for clean energy production — which haven’t even kicked in yet.

In the post-pandemic era, revitalizing sleepy downtowns — deprived of many of the office workers of yore — is a top priority for America’s city governments.

• Today, we bring you a case study of one city — Washington, D.C. — from our colleagues at the Axios D.C. newsletter.

The big picture: D.C.’s office-to-residential pivot is underway, with nearly 2,500 new apartments in the works, Cuneyt Dill and Paige Hopkins report.

• An Axios tally found that 383 units are currently under construction and another 2,105 units are part of upcoming projects.
• Most conversions are concentrated downtown, but also span from north of Dupont Circle to Southwest.

Zoom out: As part of its goal to attract 15,000 new residents to live downtown, D.C. is making conversions easier for developers.

• A 20-year tax break for such projects is expected to take effect this October for builders who commit to making 15% of units affordable.

Yes, but: There are barriers to converting offices. For one, if an office building is half full with long-term leases, the owner of the building can’t just kick out the tenants.

Zoom in: One of the largest projects, near Dupont Circle, envisions 600 to 650 units.

• Michael Pestronk, co-founder of the developer Post Brothers, tells Axios that the plans are to convert two 1960s-era towers into apartments — some with up to four bedrooms.
• Part of an old parking garage would turn into a gym and other amenities. About 40 apartments will be affordable.

What's next: Several more D.C. projects still under wraps are expected to be announced over the coming year, including office-to-hotel conversions.

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