Economy growth may slow to 7%
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Chinese economic growth may slow to about 7 percent per annum in the next three to five years from 10 percent now, Liu Shijin, deputy director of the State Council's Development Research Center, a government think tank, told a forum on Saturday.
Liu said that along with the slowing growth, rising costs and price hikes will be the three major challenges China faces in the future.
He warned of price rises caused by excessive liquidity, especially after the United States adopted its "quantitative easing" monetary policy.
He said the US policy will add to inflationary pressures in emerging economies, and China will face great imported inflationary pressures.
He also said the US dollar weakening is "inevitable" in the long run, which may spur a "currency war."
The Chinese economy will encounter severe challenges in the coming few years and undergo its "most significant" transformation over the next 5 to 10 years, he added.
