An orderly adjustment of the Chinese economy towards a new normal growth rate is under way, according to the latest Economic Outlook report published by Organization for Economic Co-operation and Development (OECD). Experts interviewed by People’s Daily said that China’s economic restructuring will lay a solid foundation for sustainable growth.

The OECD's report highlighted the fact that Chinese bank lending has been geared towards more productive uses, while investment has been slowing for some years and is now a smaller fraction of GDP than consumption. Meanwhile, tax cuts have been adopted for small and micro firms.

China’s slowing economic growth can help avoid economic bubbles, and its economy is focused on the quality of growth, laying a solid foundation for sustainable growth, Martin Bürger, General Manager at DAPG German Asia Pacific Society, told People’s Daily.

Bürger added that China will be a strong competitor in global services and R&D, and more of its sophisticated products will go global.

The short-term slow-down of China's economy is compensated by many factors such as easing of monetary policy, the acceleration of infrastructure investment, and the effective launch of the New Silk Road, the OECD report said.

Christian Dreger, an expert in the German Institute for Economic Research (DIW Berlin) also told People’s Daily that China’s economy is transiting from export-oriented to consumption-oriented, thus resulting in slowing growth. He pointed out that there is no need to worry about the slowdown because it has not brought unemployment. Instead, Chinese salaries are rising and driving higher consumption, so the economy is sound enough to achieve a soft landing.

The OCED expects 6.8% economic growth from China in 2015 and 6.7% in 2016. Consumption will play a bigger role in driving economic growth said He-Ling Shi, professor of Monash University. China’s booming service industry dwarfs manufacturing, and the country is restructuring its economy, a move that will make its economy healthier, said James Laurenson, Professsor, Australia-China Relations Institute, University of Technology, Sydney. He is upbeat about China's economic prospects.

This article was edited and translated from 《经合组织为中国经济“点赞”》, source:People's Daily Overseas Edition, Author:Luo Lan