IndexIntroductionChinese economic growthChinese economic policyChinese fiscal policyIntroductionThe Chinese economy appears to be losing some momentum in the fourth quarter as the economy is moving towards a higher growth trajectory sustainable. Thanks to the cooling real estate market, investment growth slowed in November. The government's campaign to improve air quality also led to the weakening of industrial production over the same period. On the other hand, the same period saw strong growth in retail sales. This was 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 Shouldn't Be Banned"? Get an Original Essay China's Economic Growth Chinese 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 stricter regulations on the real estate market and stricter environmental regulations. According to forecasts by Focus Economics panelists, China's economy will grow by 6.4% in 2018, unchanged from last month's forecasts. In 2019, the economy is expected to grow at 6.2%. Capital accounts have benefited from strong foreign direct investment (FDI) inflows. With record inflows of $118 billion in 2013, the last decade has seen a strong performance of foreign direct investment, making it the second largest recipient of foreign investment. Among the countries that invest the most in China are Hong Kong, Singapore, Japan, Taiwan and the United States. Furthermore, China's overseas investment has grown by leaps and bounds in recent years, and some analysts say the country has the potential to become a net exporter of capital in the coming years. Since 1993, China has recorded uninterrupted trade surpluses. Total trade has seen a nearly 100-fold increase and has risen to $4.2 trillion in just three decades. In 2013, China overtook the United States as the world's largest trading nation. China has been pushed to become a major manufacturing hub thanks to massive government investment programs. China's economic policy The Chinese government's courageous support for economic activity and the country's growing integration into the global economy have led to a surge in economic growth in recent decades. However, the successful economic model that has lifted hundreds of millions of people out of poverty and fostered their economic and social development has also come with many challenges. To ensure the sustainability of the country, the new administration led by President Xi Jinping will have to address issues such as serious economic imbalances, growing environmental problems, growing economic inequality and an aging population in the near future. Electronics and machinery constitute approximately 55% of production. Of the 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 hold export shares of 24% and 23%, respectively. Despite rapid expansion, exports to Africa and the South represent only 8% of total shipments. China's fiscal policy In 1994, the government launched a bold reform.