China is facing more and more severe external environment. Most countries are facing the threat of sluggish growth and rising inflation. The high-tech industry competition among major countries is becoming increasingly fierce. The United States is strengthening its suppression of China’s high-tech industry. In 2023，the contribution of exports to China’s manufacturing industry and economic growth will decline. The pressure of RMB devaluation and capital outflow will last for a period of time，but not for long. Foreign capital will adjust its industrial chain arrangement in China. Responding to external challenges needs to be based on three aspects. First，need more counter cyclical policies to expand domestic demand，ensure macroeconomic stability；Second，maintain the flexibility of the RMB exchange rate and give full play to the role of the exchange rate as an automatic stabilizer；Third，implement the innovative development strategy and coordinate development and security at a high level of openness.