"The Chinese economy is still running in a reasonable range with major economic indicators recovering and positive factors increasing. Slowing but stablizing, the Chinese economy now is presenting a sound momentum of growth." Wang Bao'an, the Director of the China National Bureau of Statistics (NBS) recently told People's Daily in an exclusive interview.

Wang explains that the stability of Chinese economy stems from the stable economic growth, stable job market, stable price, stable agricultural development, and stable income. For example, the GDP year-on-year growth of the first half of 2015 is around 7 percent, and jobs added for 7.18 million people in the urban area. He also mentions the good signs in real estate sector and economic structure. Of the economic structure, a proportion of the tertiary industry has been increasing. The year-on-year growth rate of the tertiary industry in the first of 2015 is 8.4 percent, which makes up 49.5 percent of the GDP. It has a 2.1 percentage point increase on the same period last year, and a 5.8 percentage point increase on the secondary industry.

Wang especially mentioned that even though the GDP growth of China was down 0.4 percentage points, it conforms to the reality of the current Chinese economic development, as well as the general pattern of a typical economy. Taking Japan as an example, from 1956 to 1973, Japan's GDP growth rate was 9.2 percent, after that, the economic growth slowed down, it was only 3.7 percent from 1974 to 1991.

Besides all the good signs within the Chinese economy, Wang also points out some problems that are still deserve attention, like the complexity of the economic environment both domestically and internationally, and the obstacles that industrial restructuring is facing. And other issues like excess production capacity are also lagging down the process of industrial restructuring.

China is still feeling the pain of economic growth model shifts, and there is still downward pressure for the economic growth. However, the fundamentals of the economy are sound. The domestic market is huge and the economy is resilient. It is especially true that there are still lots of space for industrialization and urbanization in comparing with other developed countries, which may continue to serve as source of economic growth.

To overcome the difficulties in the current economy, Wang proposes three main points: first, seen from a short term, making full use of investment is very important; second, for a long term, innovation is the key for industrial restructuring; third, reform is the key to make sure the market can play its decisive role in allocating resources. 

This article is edited and translated from 《中国经济：稳在何处，好在何方》，source: People's Daily, author: Zhu Jianhong