China's era of rapid economic growth is ending as the country faces deep and structural economic problems. The lifting of strict COVID-19 controls initially led to a surge in spending, but underlying issues such as a property boom, government overinvestment, and enormous debts are now resurfacing. President Xi Jinping's crackdown on private enterprise and deteriorating relations with the West have further dampened foreign investment. Economists believe these structural problems will hinder China's growth potential, with estimates suggesting growth rates of 2% to 3% instead of the previous 6% to 8%. Foreign direct investment into China has declined, and competition from other countries is increasing as firms seek to diversify supply chains. Reforms to foster private-sector activity have stalled, leaving many businesses hesitant to invest.