Although, the economy of China is quite complex. It faces significant economic challenges. The emergence of tariffs and sanctions are likely to hamper the economy of China with export restrictions. The issue is further compounded with lack of consumer spending as household wealth is largely in the property market. Before the property crisis, this accounted for a third of China's economy. Reforms and policies have been made to stabilize the property market but there are too many empty homes and commercial properties that make for a problematic oversupply and forcing down prices. Furthermore, there is focus on private sector to push for investment and innovation that could increase income and job outlook to improve consumer confidence. A high public debt and unemployment have affected savings and spending. Businesses are also not looking to China as new production forces and as a leader in goods manufacturing. This is again a result of uncertainties which has subdued foreign business investment. Key areas that will make significant difference in how China's economy plays out in near to long-term future include: technological advancements as a global leader, large domestic market for consumption, government intervention to establish policies that address the economic challenges, global economic conditions, and geopolitical relations.
- Property Crisis: severe downturn which impacts construction, consumer confidence, and economic activity
- Debt Issues: high debt levels in local governments and state-owned enterprises that increase risks to financial stability
- Aging Population: strain on social security systems and slower economic growth
- Geopolitical Tensions: tensions with USA, trade disputes, and greater technology competition
- Slowing Growth: concerns on sustainability of development model
