Covid restrictions and a recession in the property sector are the two biggest obstacles to China achieving GDP growth above 5% next year. However, we have seen some changes in government policy to address these two issues. China is preparing to move away from its zero-Covid policy, announcing a new Covid protocol in November. But the current outbreak will still slow economic growth in Q4. In the property market, releasing a robust stimulus package could support a soft landing. Getting stalled projects going again is a priority. But recovery in sales and new starts will happen later in 2023.