Xu Shaoshi, chairman of the National Development and Reform Commission, speaks at a panel discussion at the Annual Meeting of the New Champions, known as Summer Davos, in China's northern port city of Tianjin on June 26. [Photo provided to China.org.cn]

China's economy is still healthy, stable and sustainable, said the country's top economic planner on Sunday at the World Economic Forum in Tianjin, as he soothed concerns over whether the world's second largest economy is losing its steam in light of slack economic data and rising global uncertainties.

Refuting pessimistic speculations, Xu Shaoshi, chairman of the National Development and Reform Commission (NDRC), asserted that "China's economy is actually embracing its ‘new normal' period featuring a change in the growth rate, optimization of structures, and a shift in drivers of development."

The world's second largest economy expanded 6.7 percent year-on-year in the first quarter, slightly slower than the previous quarter's rate of 6.8 percent; it's the slowest reading since the global financial crisis in early 2009.

Despite a slowdown in growth, Xu reassured that the economic expansion is still within a reasonable range between 6.5 percent and 7 percent which was set earlier this year during the annual sessions of the NPC and CPPCC.

But he urged that the growth rate for the next five years should not be lower than 6.5 percent if the country is to reach the target of building a moderately prosperous society in all respects by 2020.

He also added that China, which now accounts for a quarter of total global growth, has made significant progress in shifting the economy to a consumption-based, service-led model, with growth driven more by innovation and technology.

"Consumption has now exceeded investment," he reported. "With emerging business models and new industries, everybody is engaged in innovation and the new drivers are enjoying very good growth."

There are significant challenges ahead, including the need to address overcapacity and to pursue further structural reforms over the next five years to enhance entrepreneurship, innovation and the adoption of productivity-enhancing technologies, Xu explained.

China plans to cut steel capacity by 45 million tons and lower coal output capacity by 280 million tons.

Though it will involve relocating 700,000 workers in the coal sector, and 180,000 in the steel industry, Xu said the work is progressing well and he is confident that the country can reach the target.

Recognizing concerns about China's debt load which rose to 250 percnet of the GDP last year, he argued that "the debt is all controllable and manageable, different from what some media outlets are claiming. It is significant that we are dealing with this issue – and the government is considering measures to reduce the corporate leverage ratio prudently and proactively."

Xu called for confidence in China's economy, citing the country's solid foundation, complete industrial system, sophisticated infrastructure, 1.3 billion market and 900 million human resources as a manifestation of the economy's potential and resilience to provide what it takes for sustained growth.

With regard to the impact of Britain's vote to leave the European Union, he confessed that the "Brexit" decision will undoubtedly bring uncertainties to the world economy and China will by no means be immune to these changes.

However, related government agencies have their contingency plans over potential risks, he explains.

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