China says economy faces global uncertainties, overcapacity at home – Business News

BEIJING: China’s economy faces risks from international uncertainties and excess factory capacity this year, the statistics bureau said on Tuesday.

The world’s second-largest economy grew 6.7% last year, easing from the pace in 2015 but roughly in the middle of the government’s target range of 6.5%-7%.

Yet, even as China’s exports are finally showing signs of recovering after a multi-year slump, the outlook for global demand is being clouded by a feared rise in US trade protectionism.

“The international situation is still complex and volatile, there are still many uncertainties and there are contradictions between domestic overcapacity and structural upgrading,” Li Xiaochao, vice-head of the National Bureau of Statistics, said a statement posted on the agency’s website.

Li pointed to problems of deep adjustments of the world economy, weak global trade and the trend of deglobalisation.

China far exceeded its targets to reduce bloated industrial overcapacity last year by forcing the…

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