No need to worry about the Chinese economy, it's on the right track

Editor's note: China's GDP growth rate was 6.5 percent in the third quarter of this year, lower than the 6.8 percent in the first two quarters, and some people have expressed worries about the state of the Chinese economy. Yan Se, vice director of Institute of Economic Policy Research at Peking University, comments:

Some worry China might fall into the so-called middle income trap. That worry is unnecessary.

From 1979 to 2010, the average annual GDP growth rate of China was as high as 10 percent, 7 percentage points higher than the world's average. However, during that period, China's economic growth was mainly driven by its labor dividend, so it stayed relatively low in the global value chain.