Allaying fears of slowdown in China, President Xi Jinping has said at the G-20 summit in Russia that the country's fundamentals are sound and have responsible economic policies.
"China's economic fundamentals are sound, and its economic policy is responsible for both China and the world," Xi was quoted as saying at the just concluded summit at St Petersburg.
Xi said China has realised that it has to advance structural reforms in order to solve the problems hindering its long-term economic development, even though it will mean slower growth, state run 'Global Times' reported.
China's GDP in the Q-2 dropped to 7.5 per cent amid apprehensions that China for the first time in years may miss the official target which was put at 7.5 per cent this year as further slowdown was expected in the later part of the year.
Xi said that China has the conditions and abilities to achieve sustainable and sound economic development and create even broader market and more development space for other countries.
Chinese analysts believe that Xi's speech in front of a global audience and aimed at bolstering confidence has set the tone for China's economic policies under the country's new leadership.
Chinese economy is slowing down steadily from the double digits since 2011 and expected to go below seven percent by the end of this year.
The government argues that slowdown was due to fall in export markets in EU and US due to global slowdown and steps are being taken by China to alter its economic growth pattern from an exported dependent economy to that of the one dependent on domestic consumption by boosting purchasing power.
It is obvious that the government has shifted its priority away from mere GDP growth, Wang Dongjing, deputy director of the Economics Department under the Party School of the Central Committee of the Communist Party of China, (CPC) said.
"The country could drive the growth rate higher if it continued with the past development model but the government decided not to do so.
"It has repeatedly brought up the term 'steady growth', signalling that economic growth is important but it is more crucial to press ahead with the adjustment of economic structure in order to transform and upgrade the economy," he said.
Echoing the same thought, Niu Li, an economist with the State Information Centre said: "Two structural reforms are urgently needed to stimulate domestic demand. One is to push for reform on wealth distribution; the other is to improve social security such as housing, education and medical care.
