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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