China Faces Economic Headwinds, Aims to Revive Growth at Key Policy Meeting

China's economy is slowing, facing challenges like an aging workforce, tensions with Washington, and a housing crisis. Officials will focus on reviving growth at the National People's Congress.

Premier Li Qiang is expected to announce a 2023 growth target of around 5%, but many economists predict much slower expansion below 5%.

To stimulate growth, China may increase government spending and further ease controls on the battered property sector. But more reforms are likely needed beyond fiscal stimulus.

Additional economic headwinds come from COVID-19 aftershocks, slumping exports, jittery entrepreneurs, and companies shifting investments away from China.

With domestic consumption weak, China may try to boost incomes and reduce inequality. But worries persist about China leaning too heavily on exports amid strains with trading partners.