The coordinated and balanced policy which the Chinese government adopts has born fruit both in the short term and long run, said analysts.
As a developing nation that is “climbing up”, China is in a period of structural adjustments and to balance steady growth with economic restructuring and further reforms is vital to the success of the “climbing” process, said Zhuang Jian, an economist at the Asian Development Bank.
The Chinese government is more realistic and practical in the face of the problems and the moves both guarantee steady growth and lay a good foundation for the future, he added.
China’s economy expanded 7.6 percent in the first half of the year, down from a full-year growth of 7.7 percent in 2012. It targets economic growth at 7.5 percent this year.
At the opening ceremony of the Annual Meeting of the New Champions 2013, also known as Summer Davos, Chinese Premier Li Keqiang said China’s current growth is at a “medium to high rate,” recognizing that China has entered a new stage divorced from the double-digit expansion in the past.
China kept an average annual growth of 9.98 percent over the past 30 years. The average rate from 2006 to 2010 was 11.2 percent, while the growth slowed to 7.7 percent last year and the target is 7.5 percent this year, according to Zhang Yansheng, secretary general of the Academic Committee of the National Development and Reform Commission.
All this indicates China’s economy is entering a substantial transformation period, said Zhang.
The consistent measures which the Chinese government has taken eye both the current difficulties and future development, achieving some effects, said Lu Feng, a professor at Peking University.
In order to ensure sustained growth, more balanced growth between the different parts of society and more consideration for people’s well being, such as health, environment, social services, etc. is needed, said Hans-Paul Burkner, chairman of the Boston Consulting Group, at the ongoing Summer Davos Forum.
It is necessary to open up more sectors to the private investment, allow for more competition and a shift from industry to services, invest in more social services such as health, education, retirement and reduce pollution,said the expert.