Why there is reason to be concerned about the situation in China in the medium term

China's first problem will be a very marked slowdown in potential growth, due to an ageing population, the difficulties in moving up the technological value chain if the geopolitical conflict with OECD countries continues and China's transformation into a service economy. The second problem will be the presence of a very high debt level at a time of sluggish growth and declining savings. Lastly, the third problem will be China's low attractiveness for investment due to the slow growth in domestic demand and high production costs relative to other emerging countries.