China released the summary of its overall economic performance in 2014 on Tuesday, showing 7.4 percent GDP growth, the lowest since 1990 and 0.1 percentage point lower than in 2013.

According to these statistics, in 2014 China's PPI (Producer Price Index) was down 1.9 percent from 2013. In monthly terms, the PPI has fallen for 34 months in a row. According to Liu Tao, associate researcher of the Development Research Center of the State Council, the falling PPI reflects the lack of endogenous power in economic growth and the downward pressure faced by staple commodities in the international market. Liu Tao thinks that the falling PPI in mining and raw material industries is the main reason behind China's PPI of 2014.

The negative growth of PPI has forced the traditional industries to upgrade. To solve the problem caused by over-supply of products, shedding capacity is inevitable. China has entered the economic "new normal", which puts emphasis on enhancing the quality and efficiency of economic development. 

"International experience has told us that along with the slowdown of economic growth, growth momentum and the economic structure will experience substantial transformations," said Li. In the past two years, China's economic restructuring has achieved positive results. In 2014, the service industry made stable progress and further consolidated its position as the largest engine of the national economy in terms of both total added value and employment scale. In addition, the demand structure of the Chinese economy has also improved. Statistics show that in 2014 the contribution rate of final consumption expenditure to GDP was 51.2 percent, 3 percent higher than the previous year.

Wen Bugao, deputy director of the Policy Research Center of National Development and Reform Commission, said: "Under the economic 'new normal', investments, exports and growth of consumption have all slowed down to some extent. However, new growth opportunities are appearing."