New normal to improve living standards

China's central bank cut the benchmark deposit and loan interest rates by 25 basis points from Sunday, which has been widely interpreted as an effort to prop up economic growth, which has been slowing.

The slowing growth in China reflects the demise of the rapid industrialization period, as well as China's demographic transition. The share of working-age people in the total population has been declining since 2010. Internationally, growth deceleration reflects slower demand in stagnant Europe and Japan, and lingering recovery in the United States.

Policymakers were able to keep growth above 7 percent last year, despite the weak investment in real estate and manufacturing, thanks to the government's "mini-stimulus" and the central bank's liquidity.