China knows slowdown in growth necessary for economic restructuring

Beijing: China knows that "a proper slowdown in economic growth is necessary for economic restructuring", a state-run Chinese daily said Thursday, noting that efforts to deepen reforms were making progress.

China's GDP rose 7 percent in Q2, 2015, the National Bureau of Statistics said in a statement Wednesday.

An editorial "GDP figures offer credible economic reassurance", in the Global Times said that this beats most predictions from both domestic and foreign economists of 6.8 or 6.9 percent growth.

"It shows that the Chinese economy is improving in a stable manner, which is a good sign as uncertainties are still haunting the world economy."

The daily noted that the Chinese economy might go through "more new difficulties in the future".

"But the country's ability to cope with pressures has been greatly enhanced. China knows that a proper slowdown in economic growth is necessary for economic restructuring.

"Still, the 7 percent quarterly growth rate is the lowest among recent years, but positive signs are being revealed. China's efforts to holistically deepen reforms are making more progress," it added.

The editorial said that "investment, consumption and exports are rebounding. Consumption inspiringly contributes to 60 percent of the growth, 5 percentage points higher than the previous year. Besides, the tertiary industry is playing a larger role in the economic growth. Private business is booming; industries labeled 'Internet Plus' are surging; starters of small and micro businesses are turning dynamic."

"All this evidence demonstrates that the efforts to rearrange the economic structure and steady economic growth have taken effect."

The editorial observed that it is still too soon to assert that the 7 percent growth rate is the bottom of the economic trough. "But China's latest economic performance has fueled people's expectation that the Chinese economy might be better in the second half of the year than the first half."

"...The Chinese economy could be much worse if the government and companies just left piles of problems unresolved. However, they are engaged in a joint undertaking to make sure targeted economic policies and measures have taken root as expected."

It went on to say that if the growth rate can remain stable at around 7 percent, the 'new normal' of the Chinese economy can be consolidated and future development will be sustainable".

"More importantly, the Chinese are starting to calm down and embrace the 'new normal'. A shift of gear in economic development has not inflicted much cost, as per capita income keeps rising, more jobs are created, and environmental maladies are being reduced."