Table of contentsIntroductionChina's economic growthChina's economic policyChina's fiscal policyIntroductionThe Chinese economy seems to be running out of steam in the fourth quarter while the economy is transitioning to a more sustainable growth trajectory. Thanks to the cooling of the real estate market, investment growth slowed in November. The government's campaign to improve air quality also led to a weakening of industrial production during the same period. On the other hand, the same period was marked by strong growth in retail sales. This is a clear indicator that the role of consumer spending in the economy is gradually strengthening. GDP growth and inflation targets are expected to remain unchanged at 6.5% and 3.0%, respectively. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essayChina's Economic GrowthChinese policymakers will continue their efforts to rebalance the country's economic model. The slow but steady deceleration of the Chinese economy is therefore expected to continue in 2018. Further downward pressure on growth will be exerted by tighter regulations on the real estate market and stricter environmental regulations. According to Focus Economics panelists' forecasts, China's economy will grow 6.4 percent in 2018, unchanged from last month's forecast. In 2019, the economy is expected to grow by 6.2%. Capital accounts benefited from strong foreign direct investment (FDI) inflows. With record inflows of USD 118 billion in 2013, the last decade has seen a strong FDI performance, becoming the second largest recipient of foreign investment. Countries investing more in China include Hong Kong, Singapore, Japan, Taiwan and the United States. Furthermore, Chinese overseas investment has grown by leaps and bounds in recent years and, according to some analysts, the country has the potential to become a net exporter of capital in the years to come. Since 1993, China has experienced uninterrupted trade surpluses. Total trade increased nearly 100-fold to $4.2 trillion in just three decades. China overtook the United States as the world's largest trading nation in 2013. China has been pushed to become a major manufacturing center due to the government's massive investment programs. China's Economic Policy The Chinese government's bold support for economic activity and the country's increasing integration into the global economy has led to strong economic growth in recent decades. However, the successful economic model that lifted hundreds of millions of people out of poverty and fostered economic and social development also posed many challenges. In order to ensure the country's sustainability, the new administration led by President Xi Jinping will, in the near future, need to tackle issues such as serious economic imbalances, growing environmental problems, growing economic inequality and aging of the population. Electronics and machinery make up around 55% of the market. In total exports, clothing represents 13% and construction materials and equipment 7%. Sales to Asia account for more than 40% of total shipments, while North America and Europe have an export share of 24% and 23%, respectively..