China explains to world how to deepen reform in 'new normal' state

As G20 leaders in Brisbane, Australia, pledged measures to boost their economies, Chinese President Xi Jinping shared China's recipe for the future: deepening reform.[Special coverage]

In recent months, the world's second largest economy has seen weak economic data, adding to fears that it may be next in line to lose steam.

As a result, Xi told the G20, the Chinese economy would maintain powerful, sustainable and balanced growth, providing the world with more market, investment and growth opportunities.

The president's remarks continue on from comments made at the APEC Beijing summit, where he said "a 'new normal' of the economy has emerged", featuring slower growth but better structural reform.

"The world should prepare to say goodbye to the good old days of China, which for a long time helped drive the world economy, especially after the 2008 global recession," said Xin Ming, a professor from the Central Committee of the Communist Party of China's (CPC) Party School.

"But that may not necessarily be bad news, and President Xi is telling the world to have faith in the world's second largest economy and in its new normal state," said Xin.

New investment opportunities unleashed by the new normal in addition to quality-oriented economic policies, will help cushion the impact of a slower economy, said Wang Xiaoguang, a policy-making expert with the Chinese Academy of Governance.

Moreover, this new environment will be accompanied by easier market access and a more efficient market, through the continuation of lifted restrictions on the "invisible hand" of the market and the ensured proper role of the "visible hand" of the government, he said.

The term "new normal" was first mentioned by President Xi in May during an inspection tour in central China's Henan Province. He said at the time that China needed to adapt to a new normal and remain cool-headed as the brakes went on.

Obviously, it is an economic term, but many observers believe it means more than that.

"China's anti-corruption drive has not only squeezed out corrupt tigers and flies [high and low ranking officials], but also may help squash the undesirable work style of civil servants once and for all," said Xin.

He also cited China's efforts to establish the rule of law and "lock power in the cage" in legal areas as evidence of a broader new normal.

In an article published in October by the People's Daily, the CPC's flagship newspaper, the author, Shi Zhihong, predicted that many more of these new normal things will emerge, including the establishment of a major cultural power, improving people's livelihood, enhancing environment and building a strong national defense system.

Such new normality will have far-reaching implications, wrote the author.

"Party cadres and our fellow countrymen should learn to adapt to this new normal state, so should some multinational companies and foreign countries. They should realize China is serious about carrying out its anti-monopoly laws and defending national sovereignty and territorial integrity."

For some China watchers, such new normality carries many surprises: Chinese leaders can tolerate the lower GDP growth rate as they watch officials as high up as Zhou Yongkang -- member of the Standing Committee of the Political Bureau of the CPC Central Committee -- are felled.

"There are no traditions that can not be broken," Guan Qingyou, an economist with Minsheng Securities' research institute, wrote in the column "Understanding New Normal: China's political and economic trends."

While many China watchers have placed their emphasis on "what's new," Xin the party school professor said "normal" was more important.

Xin said that this new normal was a return to what it should have been.