After high-speed growth over 30 years, China is now entering a new phase of economic transformation and industry upgrade.
To fulfill its objectives, the country must turn to a more environmentally-friendly and sustainable growth pattern. During such transformation, economic growth is bound to slowdown, which raises questions as to the probability of another global recession.
On the whole, the Chinese economy maintains rapid growth momentum; its slowdown but the result of macro-adjustments made by the government. Regardless, the pace of development in China still trumps that of other major world economies.
Economic growth during the second quarter fell to 7.5 percent, in accordance with objectives set up at the start of the year. Thanks to government policies to ensure steady development, the growth rate again rose in July.
While the speed of development is important, the quality of growth is of much greater significance.
Although some argue that while China can afford even more rapid growth because of its vast potential, a mode centered on the GDP is no longer suitable.
For a long time, the Chinese economy has faced challenges such as excessive capacity, improperly allocated resources and inefficient development, on which unsustainable growth has been largely based. Thus, high speed development is not necessarily a good choice.
Currently, China needs to maintain modest growth in correspondence with its economy and advance restructuring, while improving the efficiency and quality of its sustainable development. Such efforts are essential if China is to avoid the trap of middle income countries and ensure robust growth.