Like many of its peers in Asia including India, China too witnessed some slowdown in growth in 2012. So the question to be asked is will 2013 see a hard landing for the Chinese economy? China's success so far has largely been on the back of exports. And exports are still likely to be under pressure in the coming years. This is because the US and Europe are still grappling with massive debt and recession. So unless domestic consumption catches up, the country could find it difficult to sustain growth rates of 10% plus. Moreover, China needs to keep a watchful eye on property price inflation. Indeed, indiscriminate lending to this sector in the past has raised fears of bubble formation. The other challenges that the dragon nation faces from a longer term perspective are rising income inequality and upward pressure on wages. The latter especially could impact its low cost advantage which has been instrumental in turning the country into a manufacturing behemoth.