Economic fundamentals still sound

Editor's note: China's economic slowdown has drawn global concern. Three experts with China's central planning body give their readings of China's economy. Excerpts:

The International Monetary Fund and other organizations have lowered their forecasts for global economic growth this year. Although China's economic growth is somewhat slower than the previous years, the economic growth of 6.9 percent in the third quarter is still relatively fast worldwide. The growth rate is much higher than not only the developed economies but also some emerging markets.

In 2014, China's GDP reached more than $10 trillion. On the basis of economic growth of 6.9 percent, the increment this year will be the equivalent of a medium-sized country's total economy. This year China has contributed about 30 percent to the world's economic growth, which continues to rank first in the world.

It's true that China's economy is facing significant downward pressures, from weak investment demand, slowing export growth, and serious overcapacity. However, China's economic development has entered a new normal and the new industrialization, urbanization, information technology and further agricultural modernization will release strong domestic demand. There is still great potential for economic development. As long as we take the initiative to adapt to the growth rate by changing the development mode and deepening structural adjustment and by further strengthening and improving macroeconomic regulation and the regulation of directional control, China's economy will continue to maintain long-term stable and healthy development. We have the confidence and the ability to complete the main objectives for this year and complete the tasks of economic and social development set out in the 12th Five-Year Plan (2011-15). This will give a good start to the 13th Five-Year Plan (2016-20).

Zhong He, an expert with the National Development and Reform Commission

Data recently released by the National Bureau of Statistics on Oct 19 show that China's economy grew 6.9 percent in the third quarter, a slight fall compared to the previous months. However, this is in line with market expectations and remains within a reasonable range. The relatively slower growth is the result of transitioning from the old mode of growth driven by investment and exports to the new one driven by domestic innovation and consumption. To maintain this level of growth is not easy, but the fundamentals are sound for China's economy to continue its transition to the new sustainable engines of economic growth. We are confident the year's economic development goal will be achieved.

The slowing of a country's economic growth is a normal phenomenon and a growth rate around 7 percent is still reasonably high-speed growth. At present, maintaining a reasonable level of employment is the anchor of China's macroeconomic policy, which will keep directional control and continue to release the domestic drivers for economic growth.

Xiao Xiao, a researcher at the Academy of Macroeconomic Research of the National Development and Reform Commission

China's growth rate of 6.9 percent is still among the fastest in the world. The world's major developed economies and emerging market economies, except for India, are all seeing GDP growth rate of less than 3 percent.

In addition, looking at the experiences of Japan, Germany and other developed economies, we can see that after a period of rapid growth, all these countries experienced economic deceleration by about 7 percentage points. China's economy has decelerated about 3 percentage points in the past five years, which is a performance significantly better than other economies in comparable periods. But although China's economic development is still steady, there is excess capacity, fiscal and financial risks and other hazards. It is also facing the pressure of the transition from the old growth model to the new one.

However, the economic fundamentals still support further rapid development. The growth trend of industrialization and urbanization will continue, as China's industrialization and urbanization still lag far behind the average level of developed countries. There is still great potential from new urbanization, new industrialization and new technology, the Internet Plus strategy, among other things. And an increase in domestic consumption is inevitable, as the demand for education, tourism, healthcare, entertainment and other services will continue to increase.

Du Feilun, a researcher at the Academy of Macroeconomic Research of the National Development and Reform Commission