China: why the country’s economy has hit a wall – and what it plans to do about it
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China's annual parliamentary meetings concluded with the government targeting GDP growth of 5% in 2024, lower than the 5.2% achieved in 2023 but higher than the IMF's projection of 4.6%. The country's economic growth drivers, including market incentives, cheap labor, infrastructure investment, exports, and foreign direct investment, are currently not working effectively. The real estate sector, which was a major driver of China's economy, is facing a crisis with property developers defaulting on debts. Weak consumer demand is related to the real estate crisis, leading to a decline in the price of goods and services. The government emphasized the need to strengthen the self-reliance of the Chinese economy and highlighted the importance of technology and innovation, particularly in the field of artificial intelligence (AI). However, transforming the economy to be driven by innovation and technology poses challenges such as the need for incentives, skilled human capital, and securing energy supply chains.

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https://theconversation.com/china-why-the-countrys-economy-has-hit-a-wall-and-what-it-plans-to-do-about-it-225623