Growth on right track despite pitfalls

China's annual economic growth target of about 7 percent in 2015 is rational and necessary. As a developing country, China still has strategic opportunities, and its investment and consumption remain two effective growth boosters despite weak demands for its exports.

Some of its industries may be outdated or burdened with overcapacity as their comparative advantage fades away, but many more must be upgraded from the lower end to the middle and higher ends of the industrial and value chains, which requires large and accurate investments. A rational solution to the environmental pollution too rests with investments in advanced equipment and production methods, rather than closing down the factories.

The Chinese government's debt accounts for only about 40 percent of GDP, while the ratio exceeds 100 percent in many other major developing and developed countries. It means China has more room to use its fiscal policies to stoke growth. Besides, Chinese people's savings ratio is the highest in the world and China has the largest foreign exchange reserves.