China People’s Daily reports on comments from Liu Shijin, deputy head of the Development and Research Center under the State Council:
- Current economic growth is in line with its potential growth rate and there is no need to be negative on China’s growth outlook
- Says there are increasing signals that the Chinese economy is bottoming out
- He cites the fast growing service sector, strong labor force demand and improving external demand
- Warned traditional investment growth is expected to slow further this year
- Sees more risks exposed by the property sector and over-capacity industries
- Said the government will expand the role of policy banks to boost public housing and infrastructure investment growth so it won’t further increase the debt burden of local governments.