China to maintain mid to high-speed growth in 2018

China has the conditions to maintain mid to high-speed economic growth in 2018, with overall investment expected to grow around 7 percent, said the head of an advisory body to the State Council on Saturday.

“The country’s infrastructure spending will likely grow at a slower pace this year as the central government looks to further standardize debt financing of the local governments”, said Li Wei, president of the Development Research Center of the State Council.

The property sector is also expected to expand at a slower rate in 2018 due to strengthened government regulation, Li said at a forum held by China Economic Times, adding that these two sectors will be more market-oriented this year.

“Consumption spending is expected to rise around 10 percent in 2018 due to ongoing consumption upgrading and the emergence of new industries, including e-commerce and the sharing economy,” Li said.

The country will see a slightly slower growth rate in its exports in 2018 due to the relatively higher base last year, Li said.

In 2017, China’s yuan-denominated exports rose 10.8 percent year-on-year, the General Administration of Customs said on Friday.

“The industrial sector does not necessarily result in overcapacity, high energy consumption and pollution. The development of the service industry cannot replace the role of the manufacturing industry in driving economic growth,” Miao Wei, minister of industry and information technology, said at the forum.

As the country enters the mid to late period of industrialization, the manufacturing sector is expected to account for a smaller proportion in China’s overall GDP, but this does not mean it will be less important, said Miao.

“The manufacturing sector will play a more important role as the driving force of technological innovation and the basis for the development of the service sector”, he said.