China's economy is back on a precarious footing. According to Chinese Premier Li Qiang, weak demand and overcapacity are the main risks to the national economy.
The official believes that insufficient domestic demand for Chinese products and overcapacity in some sectors of the economy pose a threat to China, preventing it from achieving economic sustainability.
Earlier, the Chinese authorities announced the growth target for 2024. The government said it would make every effort to keep economic growth steady at around 5%, a rate described by many experts as "ambitious." However, the above-mentioned factors could act as headwinds and put pressure on the world’s second-largest economy.
The Chinese premier is also concerned about numerous other risks that could obstruct the implementation of the task set by the government. "The foundation for the continuous recovery and improvement of our country’s economy is still not solid," Li noted.
In late January, the official said the national economy grew at an annual pace of 5.2% last year. According to analysts' estimates, the current GDP growth target set by local authorities for 2024 nearly matched the rate achieved in 2023.
