Chinese Premier Li Keqiang says the world's second largest economy is not heading for a hard landing, shrugging off concerns over the country's slowing growth rate.
Li was speaking at the annual World Economic Forum in Davos, Switzerland, a day after official data was released showing China posted its weakest growth rate in 24 years.
He admitted that the Chinese economy is facing "substantial" downward pressure.
"It must be noted that the moderation of the growth rate in China reflects a profound adjustment in the world economy and it is also consistent with the laws of economics. More importantly, we have made further progress on structural reforms. Needless to say, the Chinese economy will continue to face substantial downward pressure in 2015."
The premier said China has entered a stage he calls "the new normal," shifting from high growth rates to medium-high rates, and that makes structural reform all the more necessary.
He said loosening government regulations and encouraging mass innovation will deliver "quality growth".
Li stressed that regional or systemic crises will not happen in China, and the Chinese economy will not head for a hard landing.
"If I could compare the Chinese economy to a running train, what I want to emphasize is that this train will not lose speed or momentum. On the contrary, it will be powered by a stronger dynamo, and will run with greater steadiness, and bring with it new growth and new opportunities."
The Chinese premier also argued that efforts to shift China's economy away from one that is investment and export driven towards greater consumption will ultimately make growth more sustainable for the world.
For more on the Premier's speech at the Davos Forum, we are now joined live by Mike Bastin, Director of The China Business Centre based in London.
