Balance growth and reform

The newly issued macroeconomic data in May created further concern about China's economy. The slowing tendency of April continued in May with investment and consumption both declining. The central bank's sudden cut in interest rates on June 8 confirmed the pessimistic view of the current economic situation.

Meanwhile, China's excess production capacity has become more noticeable against the backdrop of the sluggish world economy.

The gloomy prognosis for China's economy provides the opportunity for decision-makers to face up to its problems and decide to what extent a reduction in the growth rate can be afforded.