China's economy is slowing down as it adjusts to a zero- Covid strategy.
If the world's second largest economy contracts, that increases chances of a global recession. Although officials have downplayed the need to meet the target, Beijing's goal is out of reach. China barely avoided a contraction in the second quarter. Some economists don't think there will be any growth.
The factory of the world has suddenly found fewer customers for its products both domestically and internationally, and that is one of the problems the country is facing. Growth is being hampered by trade tensions between China and the US
The Chinese currency is on track for its worst year in decades, as it plummets against the US dollar. A weak currency makes investors nervous. It makes it hard for the central bank to make money.
All of this is happening at a time when the stakes are high for the president, who is expected to get a third term at the party congress.
What happened that went wrong?
Economic activity has been adversely affected by covid outbreak in several cities.
Major services are under pressure because people are not spending money on things.
According to the National Bureau of Statistics, factory activity seems to have increased in September.
It is possible that the government is spending more on infrastructure.
After two months, manufacturing did not grow. Since a private survey showed that factory activity fell in September, it has raised questions.
Higher interest rates and inflation have led to a decline in demand in the US
There isn't much reason for Beijing to do more until Covid ends.
Louis Kuijs, chief Asia economist at S&P Global Ratings, said that there isn't much point in pumping money into the economy if businesses can't expand.
In August, Beijing announced a plan to boost small businesses and infrastructure.
Officials can do more to meet growth targets.
Investments in infrastructure, easing borrowing conditions for home buyers, and tax breaks for households are included.
Mr Kuijs said that the government's response to the weakness in the economy has been modest.
Negative sentiment in the housing sector is slowing growth.
Property and other industries make up a third of China'sGDP and this has hit the economy hard.
Mr Kuijs said that people feel unsure about the economy when confidence in the housing market is weak.
Home buyers aren't making mortgage payments on unfinished buildings and some think their houses will never be finished. There is less demand for new homes and less need for imports of construction materials.
Home prices in many cities have fallen this year despite Beijing's efforts to prop up the market.
Authorities might have to do a lot more to restore confidence in the real estate market.
China's industries are being affected by extreme weather.
The south-western province of Sichuan and the city of Chongqing in the central belt were hit by a heat wave and a dry spell in August.
The demand for air conditioning overwhelmed the electricity grid in a region that mostly relies on hydropower.
Major manufacturers like Apple andTesla were forced to cut hours.
The iron and steel industry's profits were down by more than 80% in the first seven months of the year, according to the Statistics bureau.
Beijing spent tens of billions of dollars to help energy companies and farmers.
Two years have passed since a regulatory crackdown on China's tech giants began.
In the most recent quarter, Tencent's profits fell by 50% and the net income fell by 50%.
Tens of thousands of young workers have lost their jobs as a result of the jobs crisis. China's productivity could be hurt by this.
Some of China's most successful private companies have come under greater scrutiny because of Mr. Xi's grip on power.
Foreign investors are taking money off the table as state-owned companies gain favor.
Warren Buffet's company is selling its stake in BYD, while Japan's Softbank pulled out a huge amount of cash from the Chinese company. In the second half of the year, more than $7 billion of investments have been withdrawn from the company.
The US is cracking down on Chinese companies.
Some investment decisions are being delayed and some foreign companies are looking to expand production in other countries, according to S&P Global Ratings.
The world has become accustomed to the fact that Beijing may not be as open for business as it used to be, but Mr. Xi is putting China's economic success at risk.
People are living in unfinished apartments.
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