View downward pressure on China's economy correctly

Economic structure continues to optimize

The industrial structure continues to be optimized although industrial growth is slowing down. Energy-consuming industries were obviously affected, but automobile and equipment manufacturing industries, also with their added value, still saw fast growth. Added value of iron and steel industry rose 7.2 percent in the first quarter, down 3.4 percent from the same period last year; that of cement industry increased 10.3 percent, down 1.6 percentage points than the same period last year.

Government won't resort to short-term stimulus

China's first quarter GDP grows 7.4%

Regionally, investment in central and western China increased 20.2 percent and 19.1 percent respectively, faster than East China's 16.4 percent. Services sector saw its added value and investment grow quickly, faster than the secondary industry since last year when the sector accounted for 46.1 percent of GDP, overtaking for the first time in history the secondary industry's 43.9 percent. Such momentum continued in the first quarter that saw an increase of 19.6 percent in services investment, two percentage points higher than that of urban fixed-asset investment.

In terms of demand pattern, consumption has become a stronger force than investment to drive the country's economic growth.

Suggestions

Generally, the first-quarter situation cannot illustrate the entire year's economic tendencies, especially when the slight fluctuation is still within a normal range. We should have full confidence in China's economic growth, transformation and upgrade.

The country has enough leverage to boost domestic demand and regional growth. Confidence is very important. The major task at present is to provide efficient macro-control and keep the economy at a reasonable level; therefore the government should strengthen expectation management and boost market confidence, while being prepared to respond to issues arising from economic situations.