GUANGZHOU -- Significant potential exists in the Chinese economy and will be released if adequate reforms are taken, said Xu Xiaonian, a renowned economist.

There would be no problems in China maintaining a relatively high economic growth of 7 or 8 percent each year in the next decade. Xu made these statements at a wealth management forum jointly held by Bloomberg Businessweek and China Guangfa Bank on Saturday.

The necessary reforms include those in the urbanization and the service industry.

In urbanization, a reform allowing the market to distribute land should help property prices.

The service industry should receive a boost from deregulation in order to create an influx of jobs.

Xu expected the directions of the current fiscal and monetary policies to continue this year with the issuance of local government debts that will expand in the coming year.