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At a press conference in Beijing held by the Ministry of Foreign Affairs, Fan Jianping, chief economist at the State Information Center of National Development and Reform Commission, provided the latest government assessment and forecast.
In the first half of the year, China’s real GDP growth rate rose by 7.6 percent on an annual basis, lower than market expectations. Worries emerged that China may experience a hard landing. However, Fan Jianping argues that China’s current growth pace is within reasonable range.
"China’s potential economic growth is around 8 percent, so between 7 to 9 percent is the new range for China’s current economic growth. It’s the new normal state that growth has slowed down to a little over 7 percent. But as long as it’s not below 7 percent, it’s not a crisis. This is our new assessment of the current economic situation." said Fan Jianping, chief economist of State Information Center, NDRC.
As for the economic restructuring, Fan says more measures are yet to be unleashed.
"The State Council has decided to reduce one third of its administrative examination and approval procedures, as well as hand over the approval power of many issues to government departments at lower levels. The work is still underway, and more measures will be announced in the second half of the year."said Fan.
But the slowdown in China - the world’s second-biggest economy - has triggered widespread concern about its impact on other economies. Fan counters that China is still playing the role of a growth engine for the global economy.
"Even if economic growth slows to between 7 to 9 percent, it’s still very high compared with other countries. China’s contribution to global economic growth has not been reduced, and it still plays the role of a major growth driver for other countries. The neighboring countries should adapt to China’s potential economic slowdown."said Fan.
Fan says that the current overcapacity in some industries as well as the shortage of staff in the service sector are normal factors during economic restructuring, and he adds that consumer industries can count with a positive outlook.