Chinese Government and Roberto Dumas

economic deterioration: Roberto Dumas, professor at the Brazilian business school Insper and a specialist on China, said that a growth rate below 7 pecent is not a sign of economic deterioration, but a reflection of adjustment measures by the Chinese government. "China is moving in the right way, lower growth but more consumption and with higher household income and better welfare," said Dumas. "Since the 2008 financial crisis, the Chinese government has realized the investment- and export-led growth of the past is unsustainable, according to Xinhua China. So it has turned to a sounder model based on improving people living standards." The Chinese government has adopted measures to strengthen the economy, such as raising wages and household income in order to boost consumption, and relaxing exchange rate controls to bolster confidence in its national currency. "This is the right way to proceed," Dumas said. China registered a growth rate of 6.9 percent last year, marking a 25-year low, amid a sluggish global economy, according to the country National Bureau of Statistics. For the next decade, China expects to see less investment and slower growth at a rate of 4 to 5 percent, as it transforms into a consumption-driven economy fueled by higher wages. In general, China slowdown should not be regarded as a crisis, according to Dumas, but a process to "rebalance its economy." China economy, the professor predicted, will experience a phase of slow growth, accompanied by a growing service sector, a slowdown in the growth of industrial production, and higher domestic consumption. Dumas also said China' s scrapping of its one-child policy is also an effective way to facilitate economic transformation, as it could help improve people quality of life by distributing the burden of supporting the elderly. "China' s determination to change its mode of economic development will contribute to the soft landing of its economy," he said. (news.financializer.com). As reported in the news.