Yu Bin. "Seeking a New Balance in Growth Transition [J]."China Investment 2013 (1)

Chinese demand is still suffering from a decrease, and requires a combination of supply and demand, short-term and mid-to-long term policies, as well as policy flexibility and effectiveness.

The GDP in the third quarter of 2012 grew 7.4 percent, the lowest growth for the year, and it is expected to see a slight rise in the fourth quarter. The year's GDP growth is expected to be a little above 7.5 percent, with the CPI slightly below 3 percent. Since the European debt crisis got worse and the world economy stayed sluggish, it's not easy that China's macroeconomic indices have hit their expected targets.

In particular, governments continued their controls on real estate even though the economy was down and the country tired to remove risks in the investment and finance while relieving inflation pressure.

Also, there has been progress in economic structural adjustment, with the service industry building momentum, rapid development in central and western parts of the country, stable employment in general, and an increase in urban and rural incomes.

And, although revenues and expenditures face continued pressure, China has worked hard in its livelihood reforms and increased expenditures which has helped boost consumer spending and social stability.

Currently, the global economy is still in an adjustment period after the financial crisis and the environment is complicated and unstable. As previous areas of competition and growth weaken and new advantages have yet to take shape, combined with insufficient lack of confidence and market expectations, the economy is still looking for a new balance in its growth transition.

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