|Xinhua File Photo
BEIJING, Sept. 26 (Xinhua) -- The latest official statistics show that the Chinese economy has picked up momentum, through which observers have noticed a major transformation in the country's economic governance.
The world's second largest economy has paid great attention to the further stimulation of domestic demand and more scientific macroeconomic regulation, rather than to credit investing like before.
The Chinese government is striving for a growth model of higher quality and more sustainability through overall planning on growth stabilization, structural readjustment and further reforms, observers say.
After rapid development over the past three decades, China saw a slowdown in economic growth from the beginning of this year.
Furthermore, the global economy is still haunted by the aftermath of the financial crisis and credit crunch, with developed economies lacking the strength for revival, and some emerging economies suffering setbacks.
Thus, whether China could continue to be an "oasis" for the world economy became a hot topic.
Observers say the slowdown in growth is not only caused by fluctuation in the economic cycle, but is also an outcome of structural readjustment.
The latest statistics have cleared up doubts on a possible "hard landing" of the Chinese economy, with market confidence increasing, industrial production and exports growth rising again, and the producer price index (PPI) picking up in July and August.
In addition, the inflation was controlled at a lower level as the consumer price index (CPI) rose by 2.6 percent year-on-year in August, the lowest in three months.
In order to avoid an over-fluctuation in economy, the Chinese government set a 3.5 percent ceiling for this year's inflation, and a basic demand for ensuring growth and employment to keep a reasonable economic operation.
When making policies, the government has not taken measures to ease money and increase deficits, but unveiled steps to reduce the taxing of small businesses, boost urban infrastructure construction, speed up the reconstruction of shantytowns, and build more railways in midwest and poverty-stricken areas.
These measures have not only prevented over-investment, but also ensured a minimum growth, thus increasing market confidence.
According to a report released by HSBC, the HSBC Flash China Manufacturing Purchasing Managers' Index (PMI), a leading and probably the earliest available indicator of manufacturers' operating conditions in China, rose to a six-month high of 51.2 in September from a final reading of 50.1 in August.
Qu Hongbin, chief economist at HSBC, believed recovery was continuing in China, supported by the simultaneous improvement of both external and domestic demand conditions.
The economist expected a more sustained economic rally in China as more fine-tuning stimulus measures would lift domestic investment and demand.
Bruce Kasman, J.P. Morgan's chief economist and managing director of Global Research, also said that thanks to the government's policy and a reviving global economy, the Chinese economy will keep a modest growth at 7-7.5 percent next year.