Opinion: Macro Risks Facing China’s Economy in 2022

China’s economic operation in 2021 can be summarized as this: Foreign trade has gone greatly beyond expectations, while domestic demand, including consumption and investment, has been slightly below expectations. Based on the data from the first three quarters, China’s full-year economic growth is expected to exceed 8%.

However, attention should be paid to the underlying unbalanced development. For example, profits are unevenly distributed among industrial companies, reflected by significant profit growth upstream and a decline downstream. Meanwhile, the service industry and some small and midsize enterprises are fighting for their survival.