External accounts benefitting from competitiveness and industrial diversification Risk of foreign over-indebtedness limited thanks to the high level of foreign exchange reserves and to the current account surplus Sovereign risk contained: public debt mostly domestic and denominated in local currency Gradual move up-market Infrastructure development spurred by the stimulus package Very high corporate savings rate that funds most investments
| Growing social tensions linked to mounting inequalities Aging of the population and gradual drying up of the pool of abundant cheap labour Overcapacity in industry and trade Weakness of Chinese banks due to credit dynamism and uncertainty as to the level of non-performing loans Environmental problems
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