Timetable for reform

"I don't think there will be a structural collapse. There may be cyclical bouts of weakness from time to time. The economy is moving into services and gradually up the value chain and I think it will be able to maintain a 6 or 7 percent GDP growth rate over the next decade while doing that."

Gary Liu, deputy director Lujiazui International Finance Research Center at the China Europe International Business School in Shanghai, says it is difficult to predict what shelf life China's current economic model has.

"The Chinese leaders have clearly recognized that the current model is flawed and that we need to change. The problem for the policymakers is that they have to strike a balance between not reducing the level of investment too sharply while allowing time for other driving factors such as consumption, innovation and urbanization to kick in."

He says one of the problems in any reform process is reining in local governments, which are responsible for the majority of the country's debt.

"If you wanted to part privatize local authority-run SOEs, for example, you would have to make sure that they reduced their debts with the proceeds and build a pensions and social welfare system. What you don't want is for them to go out and start building expressways again."

Wolf at the Financial Times believes the Chinese economic model will have to fundamentally change with the only question being over the period of the adjustment.

"The question is whether it is done in a quick short sharp way which would involve much lower growth than is currently envisaged or whether the government decided to cushion the process when it would be more drawn out.

"It is a value question I really can't answer but my sense is the Chinese government would be very keen on stability and unhappy with major economic turbulence."

Deepening reforms can help China tackle challenges	FDI registers healthy growth