Business / Economy

China's economy in 'new normal' continues to power global growth

(Xinhua) Updated: 2015-12-22 10:43

BEIJING - Against the backdrop of the global struggling for economic recovery and the worsening situation in some emerging markets in 2015, China's economy has remained a strong engine for the world economy.

Though the Chinese economy has changed to a "new normal" of more sound and slower growth, it continues to create development opportunities for the world.

At the G20 summit held in the Turkish resort city of Antalya, Chinese President Xi Jinping said that despite a recent slowdown, China has still contributed 30 percent of world economic growth, which means China is still a major world economic powerhouse.

It is predicted that the world's second largest economy will grow around 7 percent this year, and will continue contributing as high as about one third of the global growth, Xi said.

China's confidence comes from its determination and actions to comprehensively deepen reform, strengthen economic endogenous dynamism and policy guidance to build a "moderately prosperous society" and double its 2010 GDP and per capita income of both urban and rural residents by 2020.

"New normal" reasonable, beneficial

Like other economies, China's economy experiences different phases of its development cycle. It is now shifting its focus to consumption and service industries from polluting heavy industries and manufacturing via complex reforms.

A natural result of the transition is lower yet sustainable and balanced growth.

"The change is rational and necessary, and is a prompt solution in the context that the world has just overcome a crisis and been in a restructuring and recovery process since 2013," said Can Van Luc, senior executive vice president of the Bank for Investment and Development of Vietnam.

Steven Barnett, former chief of the China Division in the International Monetary Fund's (IMF) Asia and Pacific Department, said the "new normal" of China's economy is good for both China and the world.

"Even at a growth rate of 6 percent, China's contribution to global economy is quite similar to what it was before," he said.

Charles Collyns, managing director and chief economist at the Institute of International Finance (IIF) in Washington, said "it would be better for China to allow somewhat lower growth of GDP and make more progress dealing with the problems of the transition to a new more market-oriented economy less reliant on credit investment."

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