China slowdown not scary, President Xi Jinping tells business leaders in Beijing

President Xi Jinping said China's economic downturn was not "scary", while even annual expansion slowing to 7 per cent would still be fast.

It was the clearest indication yet from the top leadership that it did not favour high growth if it came at the expense of delayed structural reforms.

Speaking to an audience of state leaders and business executives at the Apec CEO summit in Beijing yesterday, Xi also said the government could cope with challenges to the economy amid its transformation towards a more consumption-driven growth model.

"Some people are worried about a further slowdown in economic growth. They wonder if the economy would face a bumpy road ahead. Such risks indeed exist, but they aren't so scary," Xi said. "Even growth of around 7 per cent would make China a leading economy in the world - in terms of either the speed or the size."

Gross domestic product growth in the world's second-largest economy cooled to a five-year low of 7.3 per cent in the third quarter, and analysts forecast it could ease to 7.4 per cent for the full year, the lowest annual expansion since 1990.

Economists widely expect Beijing to lower the annual GDP growth target to 7 per cent in 2015 from 7.5 per cent this year to reflect falling productivity and a shrinking labour force.

Xi, however, said China's growth would be supported by initiatives including innovation and urbanisation. Beijing aims to move about 20 million farmers each year to cities in an attempt to raise household incomes and narrow the urban-rural gap.