GDP is expected to grow 4.2% in 2017 and 3.7% in 2018, driven strong private consumption and rising investments including structural funds from the EU.
Despite the current rebound the long-term prospect for higher growth rates is subdued due to structural weaknesses and the negative impact of sanctions.
GDP growth is robust, but risks in the banking and corporate sectors have increased while high dependence on capital inflow remains a major vulnerability.
As more and more carmakers rush to enter into the electric and hybrid car segment, annual capacity in China is about to exceed 7 million units by 2020.
Automotive suppliers´ margins remain structurally under pressure, as the powerful car manufacturers demand greater productivity, coupled with lower prices.