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China's growth slowdown not caused by internal factors: economist


China's economic growth has been slowing since the first quarter of 2010 and the major reasons behind it are not internal structural factors, an economist said on Friday.

As a developing country going through transformation, China definitely has structural problems, but declining growth in the past 18 quarters was caused by the external environment, said Justin Yifu Lin, former chief economist of the World Bank.

He made the remarks at the forum "Opportunities for Chinese Enterprises under the New Normal of Chinese Economy" held by the National School of Development at Peking University.

Citing examples of countries that have experienced similar trajectories in the past years, including India, Brazil, the Republic of Korea and Singapore, he said that the economic growth rate in Brazil, for example, was 7.5 percent in 2010, but only 2.2 percent in 2013, namely it went through a similar slowdown as China, but more violently.

"You cannot blame China's internal factors for their dropping growth rates," Lin said, believing that there are external reasons for the countries to go through such similar growth trajectories.

He reaffirmed that China can achieve its 7.5-percent economic growth target this year, based on its investment opportunities on industrial upgrading, infrastructure, environment and urban management.

He said that China's annual growth must average to 6.8 percent to achieve its target to double its economy in 2020 from 2010. But the annual growth should be at least 7.3 percent to achieve its another goal to double the per capita income in 2020 from 2010.

China's economic growth rate will stay between 7 to 7.5 percent in the coming five years or even longer, Lin forecast, adding that in such circumstances, China's enterprises face two opportunities: overseas mergers and transferring labor-intensive businesses overseas.

China's economy grew 10.4 percent in 2010, 9.3 percent in 2011, 7.7 percent in 2012 and 7.7 percent in 2013.

Source:Xinhua Published