"I am very optimistic about the Chinese economy," says economist Fred Bergsten during an exclusive interview with People's Daily. "China's economic growth rate will remain at 7 to 8 percent in the next 10 years." the renowned US economist also points out three layers of world economic prospective: Chinese economic development will keep on a fast growth, Europe and Japan will be average in performance, and the US will be in between.

Starting at age 27, Dr. Bergsten coordinated US foreign economic policy in the White House as assistant for international economic affairs to Dr. Henry Kissinger at the National Security Council, and also functioned as assistant secretary for the US Treasury. He was the founding director of the Peterson Institute for International Economics (formerly the Institute for International Economics) from 1981 through 2012. After his retirement, he remains as a senior researcher and honorary director of the institute.

"Achieving the growth target of around 7 percent shows that the Chinese government is very aware of the problems it is dealing with, and is working hard to reform and promote a new economic model," Bergsten agrees that positively adapting to the new normal situation is the right choice for China. He also suggests that China should make full use of its foreign exchange reserves, and devote them to balancing debts, expanding domestic investment, and importing promotion. "This will be beneficial to the economy of China and to the whole world," said Bergsten.

The former director of the Washington DC based think tank pays a lot attention to the bilateral trading ties between China and the US. He thinks that as the two biggest and most important economic entities, the economic situations and policies of China and the US have a direct causal relationship with the stability and prosperity of the whole world international economy. The two countries should cooperate more, reduce negative stresses, and deal rationally with issues on political, economic, trade, and security fronts.

Bergsten also disclosed a "secret" to People's Daily: last year before President Obama visited Beijing, he was invited by the White House for consultation on China issues. Back then he suggested the US should support the Asia Infrastructure Investment Bank (AIIB). "Unfortunately they did not take my advice." Dr. Bergsten thinks that US needs to change its present policies - not only should it take a positive role in the establishment of the AIIB, but also encourage the World Bank and other multilateral financial organizations to cooperate with the AIIB. 

This article is edited and translated from 《适应新常态是正确选择》，source: People's Daily, author: Wang Chuanjun