Challenges abound, but can't dim 2024

"The Chinese market is still huge with very great potential," said Fabien Pacory, vice-president of the French Chamber of Commerce and Industry in China (CCI France Chine). "The country is moving in the right direction … I'm quite confident about China's economic prospects in 2024, as I can see many adjustments and many big efforts have been made by the provincial governments and central government. We will be able to see some improvements at the end of this year."

He said many French companies still think China is a very important place for production as well as a key market. "They are confident that China is working hard to make sure everything is going in the right direction."

Zou Yunhan, deputy director of the macroeconomic research office at the State Information Center's Department of Economic Forecasting, said China remains a key growth engine for the world economy, contributing around one-third of the global economic growth in 2023.

The momentum of China's economic recovery is poised to undergo further consolidation and strengthening this year, propelled by robust policy support, the advancement of industrial transformation and upgrading, and the continuous deepening of reforms, she said.

Zou anticipated that China's GDP will likely grow by around 5 percent this year, with a steady improvement in consumption and investment.

"As the Chinese economy gradually shakes off the impact of the pandemic, consumer spending recovery will continue to accelerate this year," she said. "In terms of investment, with the optimization and adjustment of real estate policies, the downward impact of real estate investment will weaken this year. And a forceful fiscal policy will drive robust growth in infrastructure investment, leading to steady growth in investment."

Data from the National Bureau of Statistics reflected the pressures facing the economy, including insufficient domestic demand and slowing external demand. China's consumer prices dropped for the third consecutive month in December, and the country's factory activity contracted for the third consecutive month in December.

The country's consumer price index, a main gauge of inflation, dropped by 0.3 percent year-on-year in December after a 0.5 percent drop in November. Meanwhile, China's official purchasing managers index for the manufacturing sector fell to 49 in December from 49.4 in November, below the 50-point mark that separates contraction from growth, according to the NBS.

Experts said the official figures indicate that China's broader economy is still facing pressures, calling for further steps to boost domestic demand and foster new growth drivers.