According a report by the Chinese Academy of Social Sciences (CASS), the nation's industries will remain competitive in the global market next year, but be threatened by serious structural problems.

The report covers 56 regions and 44 economic development and high-tech industrial parks across the country. The findings indicate that China’s competitiveness still lies in low skill manufacturing production rather then high-tech production.

Experts from the institution warn that the global economic slump will put great pressures on China’s exports going forward. They also say that trade protectionism against Chinese products is on the rise - and that could stifle global trade growth.

The report says China is now a middle-income country, and thus could be entering a phase of diminishing returns, with slower economic growth.