The revision is due to “pressure from low inflation“, said Zhang Ping, an official with the think tank.
Sticking to policy lines casts doubt for many on whether Chinese leaders have a grip on maneuvering the country’s economic transition in a way that doesn’t shock global markets more than it already has.
There is a new 244 page analysis of China’s economy. They have to continue to open up their markets to competition. A study of China’s economy by Daniel Rosen and Beibei Bao for the Center for Strategic and worldwide Studies indicates in 2014 instead of a $10 trillion economy it was closer to $11.5 trillion.
Most of the economic reports still focus on manufacturing-related aspects of the economy, such as electricity use and the producer price index.
There remains huge growth potentials in China thanks to substantial domestic demand, and ongoing urbanization and industrialization, according to Wang Baoan, head of the National Bureau of Statistics.
Amid the transition, questions also surround the accuracy of China’s reports on headline GDP growth.
It follows the Asian Development Bank downgrading China’s expected rate of growth for 2015 from 7.2% to 6.8%. On Monday, the two countries reached 53 agreements on nuclear energy, high-speed railway, infrastructure among many others at the 7th China-Britain Economic and Financial Dialogue in Beijing.
Beijing has only said that it is targeting growth this year of around 7 per cent. CASS’s status as a premier state-backed centre for academic and policy research means its outlook to a certain extent reflects central government thinking.
Despite its turbulent relationship with American companies such as Google (GOOG – Get Report) and Facebook (FB – Get Report), the Chinese government has organized a technology forum in Seattle on Wednesday, which many top tech heavy weights are expected to attend.
Xi said, to understand China’s economy, one needs to take a longer view.
To shore up growth, the government has reduced interest rates four times this year, cranked up fiscal spending, cut fees and taxes, and rolled out major projects to boost investment and consumption.