The biggest threats to China's economy in 2018

BEIJING (Jan 2): China starts three years of " critical battles" against debt, poverty and pollution in 2018 as policy makers also face rising US interest rates, renewed trade-war threats, and nuclear saber-rattling from North Korea.

While the nation is starting from a position of greater strength, with full-year expansion in 2017 poised for its first acceleration since 2010, the world’s second-largest economy is seen slowing in 2018, even without any of the more grave dangers materializing. As a result, the government of Xi Jinping is signaling that it’s sanguine about more modest economic performance, if progress on the number one risk -- financial fragility -- can be made.

"Significant economic imbalances continue to create downside risk to the outlook for 2018," said Rajiv Biswas, chief Asia-Pacific economist at IHS Markit in Singapore. "Risks to the Chinese economy will remain among the key risks to the global growth outlook in 2018, with the Asia Pacific region particularly vulnerable to the shock waves from a slowdown."

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