Senior academic expects stable Chinese economy

The Chinese economy's growth will remain relatively stable until 2025, a senior academic said Thursday.

It will grow at a stable rate of about 7 percent until 2023, when China is expected to be the world's largest economy, said Liu Wei, economist and executive vice president of Peking University, at a forum.

In 2014, China's economy grew 7.4 percent, the weakest expansion in 24 years. The target GDP growth stands at about 7 percent this year.

Despite a slowdown in the labor market, China has ample tools and policies to support the economy such as the Belt and Road Asian trade infrastructure initiatives, industrial upgrading and ongoing urbanization, Liu said.

However, he pointed out that the GDP growth rate may fluctuate with the changing domestic and international economic situation and suggested more flexible and targeted macro-regulation is needed.

Technological and institutional innovation is key to facilitate China's economic restructuring, with more reforms likely to give the market a more decisive role in allocating resources, Liu added. Endi