Taking the long view

There is no free lunch. The saying may be another explanation for China's economic slowdown in the first half of the year. The economic transformation is proceeding at the cost of economic acceleration in order to obtain sustainable development in the long term.

To shake off the energy-consuming and high-polluting development model of the past, China began its economic transformation as early as a decade ago. Since the new government came into power in March, economic transformation has become a top priority.

In the past four months, the new government has unveiled an array of policies and measures to spur changes to the economy. Reforms have been pushed forward in administration, taxes, finance and investments. The current unreasonable system has resulted in the current problems facing China. To change the system, China should seek new growth points, speed up the modernization of its industries, restrict local government investment and put a curb on the blind expansion of real estate.

Transformation is clearly under way. Imports and exports only contributed 0.9 percent to the growth rate in the first half. In contrast to the trade-driven economic growth model of the past, such a fact indicates some positive signs for China's economic facelift.

Such transformation, in turn, has reduced the economic growth rate. China's economy is experiencing some major woes while getting rid of its old growth model.

It is necessary to sacrifice rapid growth for the sake of reforms. The outside world should not doubt the development potential of China's economy, for the Chinese Government would control the pace of the economic transformation in case of a "hard landing." It is reasonable and controllable as long as economic growth ranges within 7 to 8 percent.

On the other hand, to overcome the difficulties of economic transformation, efforts should be made to stabilize growth during restructuring. In the end, the world should not lose faith in China's economic prospects due to the current slowdown.