Indicators are the lowest for the past 14 years

The growth of the second largest economy in the world has slowed to its lowest level in 14 years. In 2013 GDP increased by 7.7 % compared to the value of 2012. These data shows the problem of supporting sustainable economic growth faced by Chinese policy, the BBC news informs.

 Many analysts expect that the pace of growth in the country will continue to fall as the government is taking steps to reorient the economy. Officials want to give up the investment and focus on the domestic market of consumers.

 It is expected that in 2014 economy is to grow by 7.5 %, but there is a risk that the rate of growth will decline over the debt problems in the economy.

 In recent years, public investment was a major factor in the growth of Chinese industry. Chinese banks, especially the four largest state-owned lenders, invested in the Chinese economy a record amount to support the high growth in the country during the global financial crisis. However, there is concern that some of these investments went to the non-manufacturing sector. This means that banks may not get back the borrowed funds. Loans have a negative impact on the economic situation in the country.

 Chinese politicians are trying to open up new opportunities for growth. As a test project, the authorities establish Free Trade Zone in Shanghai. In addition, China has recently stated the open access to foreign telecommunications companies in Shanghai. The city will produce game consoles and sell them all over China for the first time since 2000. Still policies strictly control such industries as finance and telecommunications.

Many analysts say that reform and openness of banking and commerce is the key to sustain long-term growth in China.