European analysts project healthy growth of Chinese economy(2)

With economic globalization, Erixon noted, it is necessary to be less strict about a growth target but more attentive to structural problems and economic imbalances.

A NATURAL AND STRUCTURAL SLOWDOWN

Looking back to the Chinese economy in 2014, the two European experts maintained that the Chinese economy is experiencing a natural and structural slowdown.

"The Chinese economy is experiencing a natural reduction in its growth rate since the low-hanging fruits in terms of bringing the excess rural population to the cities have been harvested already," said Gros.

"However, the situation is not worrying in the medium run since there are still strong growth factors," said Gros.

He noted that the quality of youth education is making more innovation and indigenous high-tech production possible. Moreover, infrastructure still needs to be improved in the western part of the country.

Yet he also stressed that there is still an excessive dependency on construction and real estate. "These sectors are important, but should not be kept alive through low interest rates," he said.

STEADY GROWTH FOR NEXT YEAR

On the outlook of the Chinese economy, Gros said China should see steady growth next year, hopefully based more on consumption and less on investment.

"The key point in the long term is to establish the supremacy of the rule of law. Another key point is to deal with the sale of land to developers: this is an endless source of temptation for corruption," he added.

Erixon said China's growth can still be healthy and, by international standards, strong. But the three mechanisms that have underlined growth in the past -- high investment levels, big monetary stimulus and export surplus -- will not deliver growth in the same way they did in the past.

He explained that China should get some tailwind from the recovering world economy and move up to a higher growth trajectory next year.

The fall in oil prices is also likely to give a boost to the growth of an energy-intensive economy like China, Erixon said.