Addressing a panel during the World Bank-International Monetary Fund annual meetings on Thursday, Yi Gang said he had faith in the Chinese economy because of recent changes.
"The first is dis-inflation pressure has decreased. And our producer price index has been negative for five years. I think this month, it will turn to positive. And also our industrial output is going up a little bit because it's heavily pressured our industry. And the profits from the industrial sector are getting higher. Employment is pretty robust right mow."
Yi said the Chinese economy has contributed 25% to 30% to the world economic growth, even during the last five years when the whole world was experiencing a depression.
He said that figure could still rise, for which China will further employ monetary, fiscal and structural policies to shift its economic model towards more consumption and imports.
Yi Gang added that domestic consumption has accounted for around 70 % of GDP growth in China since the beginning of last year, which he said was quite a progress.
As an official from a big player in the international economy, Yi Gang also commented on rising protectionism and the recent setback in globalization.As a supporter of liberal trade, he said history told that protectionism couldn't last long.
"Give developing countries and less well off regions more representation, listen to their voice, and identify the problems they are complaining about. If you look at the long history, you will see that this kind of phenomenon can only last for a few years. I believe that maybe three years later, five years later, people will continue to build the consensus on free trade and globalization. That is the correct direction to go."
Yi has proposed inclusive policies so as to benefit developing economies as well.
"I think now the challenges we are facing is real. Whereas we gain a lot efficiency from globalization, from free trade, we have to see the problem that the growth is not even, income distribution is uneven. That's why there is a lot of tension and emotional appeal for de-globalization. In terms of policy design, we have to really address. That's why this year's G20 adds inclusive growth into the agenda."
Yi has also called for attention to be paid to supporting mid and small-size enterprises.
The Chinese official was joined at the panel by IMF Managing Director Christine Lagarde, Bank of England Governor Mark Carney, and German Finance Minister Wolfgang Shauble.
