China should slow growth and consolidate, says think tank expert

China's steady development has strongly contributed to the economic growth of the whole world, says an economist with a leading London think tank.

Alan Wheatley, associate fellow for international economics at the Royal Institute for International Affairs at Chatham House, said, "It is very heartening that the world can look forward to another year of strong Chinese growth, at 6.5 percent, because the stimulus policies that Beijing provided last year are an important reason that the global economy, as a whole, is doing better."

The International Monetary Fund said that China's contribution accounted for 33.6 percent of the world's economic expansion in 2016. It recently overtook the United States to become Germany's leading trading partner.

"What is good for China is good for the world," Wheatley said.

Wheatley hopes that China will try to manage economic growth by introducing reforms, such as reforming State-owned enterprises and trimming excess capacity in industries including coal and steel.

"A lot of (so-called) zombie companies in China are serving useful purposes in providing jobs, which I agree with, but ultimately, if China wants to increase productivity and rely less on credit, increasing the efficiency of its economy, it needs to find a way to allow these companies to exit the market," he said.

Wheatley said China has been running a sprint for the past 40 years and needs to adapt its style for long-distance. It needs to slow down and ensure its development is more measured and sustainable.

"There was an urgent need for rapid development because there were hundreds of millions of people in China in poverty, but it seems to me that the first phase has been largely concluded," he said.

Wheatley said he hopes the two sessions will send a clear signal that a lower, more sustainable rate of growth will be acceptable.