China's economy has faced challenges and uncertainties recently. The country's economic growth has been heavily reliant on investment growth supported by an inefficient banking system, as highlighted by the International Monetary Fund. Despite China's transition to an upper-middle-income country and the eradication of extreme poverty, a significant portion of the population remains vulnerable economically, within comes below the threshold. China's global trade surplus has seen an increase due to rising goods and services exports in 2022.
As China heads into 2024, its economy is encountering serious headwinds and structural issues, signaling a precarious situation for the world's second-largest economy. There are concerns about whether the Chinese economy has reached a critical point, with discussions on whether it has hit a wall in terms of growth and sustainability.
April 26, 2024