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China's current economic growth normal: expert

0 Comment(s)Print E-mail Xinhua, June 24, 2014
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Renowned Chinese economist Li Yining on Monday refuted the notion that China's economy is in decline while noting that the previous high growth rates were "not normal."

"The previous 9 to 10 percent growth rates were to cope with the global economic crisis, and they were actually not normal. It won't do us much good if we keep that up," said Li, a national political advisor, at a meeting of the Standing Committee of the Chinese People's Political Consultative Conference National Committee, China's top political advisory body.

Li said that China's current GDP growth should be higher than the released figure, citing that housing construction in rural areas, the significance of which is growing fast in China, is not included in the country's GDP calculation while it usually is in developed countries.

According to Li, other fast-developing fields such as the incomes of maids and nannies as well as rural roads and bridges built in charity programs were not encompassed by China's GDP either.

He also refuted doubts concerning the authenticity of China's GDP figures.

"Some state-owned companies might make false reports to showcase their performances. However, the discrepancy can only be small, otherwise, it will be easily detected during auditing," according to the political advisor.

Meanwhile, private businesses, which contribute more than half of China's GDP, will do anything to report less due to taxation concerns, Li added.

He warned that a roller coaster-style trajectory will not be good for China's economic growth in the long run.

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