China has potential for mid-high growth

Many pessimistic analysts just see the slowdown in economic growth, but they ignore the positive changes taking place in the economy.

The Chinese economy grew 7.4 percent last year, the lowest since 1990, and it is predicted the speed of growth will decelerate further to 7.1 or 7.2 percent this year. The government is willing to sacrifice a certain rate of growth for the transformation of the country's economic structure, because as economic growth is slowing, the quality of growth is growing.

The slowdown of the Chinese economy is caused by multiple factors. The government stabilized the economy with huge investment from 2008 to 2010. But the stimulus package raised the whole economy's leverage ratio and boosted the fast rise of housing prices.