• Relying on exports to drive the economy leaves China vulnerable to external shocks, while the continuously growing trade surplus increases the risk of additional trade protectionist measures from its trading partners.
• The transition towards greater reliance on domestic demand is expected to take time, while China’s economic stimulus measures are focused on supporting and upgrading targeted industries, as well as addressing structural challenges.
• KResearch expects China’s economic growth to slow from the previous year but remain at the lower end of the official target range, at 4.5 percent.
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