China's Finance Minister Lou Jiwei said here(Washington) Thursday that his country's economy will not take a hard landing and a slower economic growth rate is a necessary phenomenon from economic restructuring.
"Despite the slowdown of China's economic growth rate, the structural reform is paying off," Lou told the press after a session on reform and sustainable development on the second day of the two-day China-U.S. meeting.(see previous post)
He said China's growth performance and quality had been enhanced and the country has the confidence to deal with the current challenges and promote the economic sustainable growth.
"The contribution of consumption to GDP (Gross Domestic Product) growth has increased, the proportion of service sector to GDP has also enhanced, the ratio of current account surplus of GDP has dropped, employment situation is good, and CPI (Consumer Price Index) is not high," said Lou.
He added that China's expected GDP growth rate this year is seven percent. In the first quarter the growth rate was 7.7 percent, and the rate in the first half of this year will be slightly lower than 7.7 percent. There is no doubt that China can achieve the growth target, though the seven-percent goal should not be considered as the bottom line.
With regard to the exit of U.S. quantitative easing policy, Lou said the U.S. economy has maintained 40 consecutive months of recovery, so China understood and supported U.S. consideration of tapering. China has not fully liberalized its capital account, so the impact on China will not be serious, he added.
