China's former chief banking regulator advised investors and researchers on Friday not to worry about the slowing down of growth of the world's second largest economy but its quality and sustainability.
Liu Mingkang, who served as chairman of China Banking Regulatory Commission from 2003 to 2011, told a symposium held by Asia Society in Hong Kong that China could not maintain a double- digit economic growth when comparatively cheep labor is no longer a driving force to sustain its GDP growth.
"Yes, China's economy is slowing down quite a bit. But don't worry about the speed and don't worry about the GDP, please worry about the sustainability," Liu said when talking about China's trajectory and implication for Asia and the world.
Liu said it has also been a message that China's new central leadership want to convey to its people and the world, "don't worry about the size and which one we want to catch up with, please worry about the management of a change."
Liu, who now a research fellow with Chinese University of Hong Kong, said China did not need double-digit GDP growth which cause the huge stir and controversy globally, because a mass investment, mass production and mass exploitation with the outcomes that left a tiny portion of rewards are not adequate enough to invest in the research and to deal with the pollution.
China's economy is still very good at a growth speed of around 7 percent annually, and as long as China remains a 6.8 percent or above GDP growth, there will be about 9 million new jobs created each year, according to Liu.
Liu said that the new central leadership has, for the first time in history, decided and planned to upgrade the state governance system and capability for the next 10 years which is a key to solve other problems.
Besides governance, Liu said the new central leadership will seek growth with quality, justice and public interests as well as a better global partnership. In addition, it will also make market play a decisive role in running the economy, which is another essential component in the reform.