World Bank President Jim Yong Kim said on Thursday that China's willingness to continue reforms despite lower growth rates is a "good example" for all emerging markets and developing countries.
"In terms of the Chinese approach to the current lower growth rates, we were very impressed with the fact that China is still committed to the reforms," said Kim at a press conference prior to the Annual Meetings of the World Bank and its sister agency International Monetary Fund scheduled to kick off on Friday.
Despite China's economy expands at a slower pace, "things like the Shanghai Free Trade Zone are going forward" and "the commitment to switch its growth strategy from one focused on investment and exports to consumption and services is going to continue," Kim said, adding it is exactly the right thing to do.
China's economic growth has decreased from the previous double- digit growth rates to 9.3 percent in 2011, 7.8 last year and 7.6 in the first half of this year, arousing worries over the prospects of the world's second largest economy.
Addressing an Asia-Pacific Economic Cooperation summit held on the Indonesian island of Bali on Monday, Chinese President Xi Jinping noted that the recent slower speed of China's economic growth is within a reasonable range and the slowdown is an intended result of China's own regulatory initiatives.
He said that China will deepen reform and opening-up in all respects.
While endorsing China's commitment to reforms, Kim also noted that indebtedness in China has gone up. "The local debt is a concern," he said. "But China has an unusual situation in that they seem to have resources to be able to support the system if that does not become a problem."
