Increases in jobs and spending indicate shift in growth engines

A Chinese clerk counts yuan banknotes at a bank in Huaibei city, East China's Anhui province, January 22, 2015.[Photo/IC]

China' economy grew 6.9 percent in the third quarter, its slowest pace in six-and-half years, the National Bureau of Statistics said on Monday. Comments:

The slower GDP growth in the third quarter has a lot to do with the nationwide industrial transition, in which the weakness in manufacturing and property signals a proactive move to upgrade the economic structure. However, it is a bit worrying that some local governments have resorted to a series of maneuvers to control real estate prices, in the hope of securing stable growth. They should refrain from taking charge of all investments and let the market have a decisive say.

Qianjiang Evening News, Oct 20

In general, Chinese industries that are highly dependent on the external environment did grow at a weak pace, whilst those related to the ongoing industrial transformation and domestic demand are on the rise. This indicates that the central government's economic policies have started to take effect as expected, with the service sector and high-tech industries replacing traditional manufacturing and real estate as China's economic drivers. The country is likely to enjoy a fundamental boost once the comprehensive reforms take root in the administrative and financial systems.

Beijing News, Oct 20

The country offers a more objective perspective of its economic structure, which is being constantly optimized, because it has managed to increase jobs as it promised this year and consumer spending is booming as well. The GDP growth of 6.9 percent does not mean that Chinese economy and people's livelihoods have reached their limits.

Global Times, Oct 20

Those arguing that China's policymakers should hold their nerve and allow traditional growth drivers to continue to weaken are missing the point. Such a course of action may reduce the risks associated with China's old growth model but, as has been demonstrated in recent quarters, this will hinder rather than hasten the development of new growth drivers. China must first pull off this difficult balancing act before the rebalancing of its economy can begin in earnest.

Financial Times, Oct 20