Long-term perspective needed to assess China's economy (2)

The world economy has been persistently sluggish due to certain ineffective economic and financial policies as well as excess dollar liquidity and depreciation of major currencies caused by three rounds of quantitative easing. Certain countries have become more short-sighted, and set up more trade and investment barriers against emerging powers, which is not conducive to global or their own economic recovery at all.

Domestically speaking, China is facing considerable difficulties in maintaining relatively rapid growth in domestic demand, Chinese companies are witnessing a general revenue decline, and there is a marked slowdown in the country's fiscal revenue growth, indicating that the foundation for economic stability is not solid enough.

However, the slowdown in economic growth is a target and desired result of the Chinese government's macroeconomic control measures. The 12th Five-Year Plan calls for accelerating transforming the economic growth model and maintaining an economic growth rate of around 7 percent.

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