Leading economists uphold China's "new normal"

BEIJING -- Li Yining and Wu Jinglian, two Chinese economists, said the economic "new normal" is a more proper development method for the world's second largest economy.

"China should bid farewell to excessively fast expansion with annual growth around 10 percent," Li said at a forum about China's economic future on Saturday, "Such improper speed can not be sustained."

Wu agreed that the former pattern of "high speed with huge investment" should be abandoned.

"Like driving a car, China's GDP was at a too fast a speed," he explained, "so now it need shift down to continue a more smooth journey."

Wu said that the stimulus package of 4 trillion yuan ($654 billion)?and 10 trillion yuan loans in 2009 only triggered a three quarters of growth over 10 percent, and is not a sustainable plan.

"Economic declines are inevitable," he stressed, "the medium-speed economic 'new normal' is more efficient than any previous policy stimulus."

He mentioned the slower pace doesn't equate to lower efficiency and the "new normal" China is striving for will balance the speed and quality of development.

The blind pursuit of fast growth caused problems like excessive consumption of resources, damage to the environment, overcapacity and lack of innovation, Li said.

"The downturn is acceptable and we don't have to worry much," he said, "We should focus on structural adjustment, high-tech innovation and training."

China's growth rate decelerated to 7.7 percent in 2012 and 2013, and in the first three quarters of 2014, the figure further declined to 7.4 percent.

Li added that high-tech industries now demand more from employees, which poses new challenges.

"High-tech factories prefer younger employees with potential and provide targeted training,"he said, "We should support private businesses and small enterprises."