China retail sales will grow about 10 per cent annually to reach 48 trillion yuan (US$7.18 trillion) by 2020, according to the Chinese Ministry of Commerce.

This is considerably slower than the 13.9 per cent annual growth rate seen during the five years through 2015. Retail sales rose 10.7 per cent in last year.

China’s economy faces downward pressure, with falling corporate profits impacting individual income growth, hurting consumption, says the ministry. Inadequate supply of mid- and high-end goods also puts a damper on spending.

By 2020, China’s service trade volume will exceed $1 trillion, the ministry says. China will have difficulty maintaining current levels of foreign investment inflows, while cumulative outbound investment will reach $720 billion.

Foreign direct investment (FDI) into China jumped 9.7 per cent last month from a year earlier, hitting a 10-month high. In the first half of this year, FDI rose 5.1 per cent from the same period a year earlier to 441.76 billion yuan (US$69.42 billion).