Local leaders' role for growth

Although China's economy is believed to have entered a new normal of slower but sustainable growth, decision-makers have demonstrated enough confidence they will be able to keep growth within a reasonable range.

The latest central bank decision to lower the reserve requirement ratio by one percentage point, which came after the two previous interest rate cuts and one reserve rate cut made since the end of last year, indicates the authorities' resolve to stabilize growth while trying to maintain the continuity and stability of macroeconomic policies.

The 7 percent growth in the first quarter, although the lowest in years, is not disheartening compared with other major economies. However, China's top leaders have displayed their determination to keep economic growth and prices within a reasonable range through targeted macroeconomic regulations, such as the adoption of preferential taxation and credit policies for small and micro-sized enterprises, and rate and deposit reserve cuts for banks focused on agricultural credit.