Slow and steady wins GDP economic race

China's economic expansion slowed to 7.8 percent in 2012, a figure that remains well within public expectations. It shows that China is no longer in a period of fast growth but is entering a stage of "medium-speed" development.

Although this current economic growth is the slowest since 1999, it proved difficult for China to reach its target over 2012, as it faced both internal and external challenges. The US, Europe and Japan are China's major trade partners. The US economy has been reviving slowly and Europe remained stuck in its debt crisis. The domestic economy in Japan was gloomy, while the Diaoyu Islands dispute affected trade between China and Japan.

Back in China, many industries suffered a downturn; housing prices rebounded while the stock market slid.

But there have been some remarkable changes. First, it is the first time that individual income growth speed exceeded that of GDP. Ordinary people are supposed to be the ones benefiting from economic growth. If their income growth falls behind the rate GDP advance, it means that people are not enjoying the country's economic achievements.

Meanwhile, economic figures show that economic growth generated by foreign trade did not meet the objectives set at the beginning of 2012, while the economic growth of 7.8 percent depended mostly on domestic demand.

In the past when China developed rapidly, the country had to pay high costs, including labor and environmental costs, to promote foreign trade. From this perspective, we can say that the outcome of the economic growth last year is cost-saving and encouraging.

In addition, there are some positive signs for investments. The growth of investment in the real estate industry has slowed compared to the fixed assets investment industry, showing that China's economy is gradually shedding its dependence on real estate. Moreover, private investments took up a larger proportion than State-owned investments.　

As Ma Jiantang, head of the National Bureau of Statistics, once said, the supply and demand situation of China's labor and the environment of resources supply are changing, and the public has set strict standards for environmental protection in order to live a high-quality life. In such circumstances, China's economy should no long grow as fast as before, but at a rate that ensures sustainability and stability.