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Australian Treasurer upbeat on Chinese economy

Xinhua | Updated: 2013-03-13 10:27

CANBERRA -- Australian Deputy Prime Minister and Treasurer Wayne Swan said on Tuesday that he believes the Chinese economic growth has stabilized and he is confident the Chinese new leadership will bring a renewed commitment to addressing China's economic challenges.

Speaking at the Australian China Business Council (ACBC)'s Canberra Networking Day, Swan recalled the pessimism on China's economy last year, saying that now all would like to agree that China's growth has stabilized "at a pretty robust pace".

"There's no doubt we had two big risks in the global economy in 2012, but China was not one of them. Rolling crises in Europe and the United States dogged the global recovery last year and they are still the biggest risks on the horizon," he said.

He said the Chinese government has still got the policy capacity to manage their economy and "they've been getting it pretty right".

Swan also pointed out that China is now 40 percent larger than it was in 2008. "So its growth rate can be 20 percent lower -- say 8 percent now versus 10 percent back then -- for China to make the same contribution to global growth."

Swan said that China will have to keep addressing its big structural challenges like the huge amount of unregulated lending in its financial system and its transition to more consumption-led growth.

"It was encouraging to hear outgoing Premier Wen (Jiabao) say just a week ago that China's continued reform and re-balancing towards domestic consumption would be critical for China's future. "

A less breakneck pace of economic growth will also enable more focus on environmental concerns, inequality, and health and safety, he added.

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