Xi Jinping comfortable with lower growth rate for China's economy

President Xi Jinping believes a slight slowdown in economic growth would be acceptable, Li Yang, a deputy head of the Chinese Academy of Social Sciences, told a briefing yesterday as the government think tank said growth could ease to as low as 6.4 per cent.

"[Xi] repeatedly said it wouldn't matter if economic growth slows a little bit. It's nothing worse than delivering a score sheet less pretty than that of the predecessors - even so, it would not be a big deal," Li said, referring to remarks Xi made at a meeting with government economists on July 8.

The insight into Xi's thinking revealed by Li may help clarify some public confusion, as it suggests the top leadership may remain committed to deepening reforms even though some of the moves may add to downside risks for the economy.

Xi had asked think tanks including the CASS to assess reform steps that had been or would be rolled out, and to also come up with top-down designs for financial and property reforms, Li said, without elaborating.

Plagued by falling productivity, an ageing population and financial risks, the mainland's economic growth rate eased to 7.5 per cent in the second quarter, a sharp contrast to growth rates that peaked at more than 10 per cent in the past decade.

Beijing has said it is targeting "an about 7.5 per cent" growth rate for this year. But contradictory official comments have sent mixed signals about the leadership's tolerance towards a slowdown.

Premier Li Keqiang said during a visit to London last month that the economy would grow at least 7.5 per cent this year. But his tone softened in a Xinhua report released earlier this month, when he said a growth rate slightly better or worse than 7.5 per cent would be acceptable.