7.7% GDP growth - No need for gloom

According to the preliminary calculations of State Statistics Bureau on January 20, 2014, China's GDP in 2013 was worth 56.884 trillion yuan. The adjusted value of GDP growth was 7.7 percent compared with the previous year, higher than the expected growth of 7.5 percent, suggesting that China's economic activity continues to operate in a reasonable range.

Some people are concerned because GDP growth has now slowed down for three consecutive years, and 2013's 7.7 percent is a new 14-year low. Has China's economic engine started to run out of power? What is the problem?

In fact, this 7.7 percent rate is the result of active macro-control on the part of the Chinese government. This level of GDP growth is higher than expected and the economic growth that has been achieved has many positive new features.

Under the pressure of economic downturn and pessimistic forecasts, the Chinese government avoided resorting to a large-scale investment plan. Instead China readjusted its industrial structure by increasing the share of the tertiary industry, stimulating domestic demand, and applying other measures to realize a healthier and more sustainable economic growth; at the same time economic vitality was further released through efficient use of stock assets, simplified administrative procedures, delegation of powers to lower levels, and other measures.

The annual data also suggest that in 2013 the added value of the tertiary industry was worth 26.220 trillion yuan, representing a yearly growth of 8.3 percent, which is much higher than the growth rate of the primary and secondary industries. With its active adjustment measures proving to be highly effective, the endogenous power of China's economic growth will continue to increase.

Reform always involves sacrifices. It is worth sacrificing a little economic growth for a more rationally structured endogenous economic growth pattern, which will raise China's economy to higher levels of quality and efficiency.