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    No doubling down on old model

    By Stephen S. Roach | China Daily | Updated: 2013-05-03 07:10

    Other countries will need to adapt as China embraces slower economic growth as a result of its rebalancing

    At 7.7 percent, China's annual GDP growth in the first quarter of this year was slower than many expected. While the data were hardly devastating relative to a consensus forecast of 8.2 percent, many expected a second consecutive quarterly rebound from the slowdown that appeared to have ended in the third quarter of 2012. China doubters around the world were quick to pounce on the number, expressing fears of a stall, or even a dreaded double dip.

    But slower GDP growth is actually good for China, provided that it reflects the long-awaited structural transformation of the world's most dynamic economy. The broad outlines of this transformation are well known - a shift from export- and investment-led growth to an economic structure that draws greater support from domestic private consumption. What is less well known is a rebalanced China should have a slower growth rate, the first hints of which may now be evident.

    No doubling down on old model

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