China needs to promote continuous technological innovation and industrial upgrading to further tap growth potential

After three decades of 9.8 percent average annual GDP growth, the Chinese mainland's economic expansion has been slowing for 13 consecutive quarters - the first extended period of deceleration since reform and opening-up was launched in 1979. Real GDP grew at an annual rate of only 7.5 percent in the second quarter of this year, though it is equal to the target set by the Chinese government at the beginning of this year. Many indicators point to further economic deceleration, and there is a growing bearishness among investors about the outlook for the mainland economy, and many are wondering if China will crash.

In fact, many other rapidly growing emerging economies have suffered - and worse than China - from the drop in global demand resulting from the ongoing retrenchment in high-income economies since the 2008 financial crisis. For example, GDP growth in Brazil has slowed sharply, from 7.5 percent in 2010 to 2.7 percent in 2011 and to just 0.9 percent in 2012, while India's growth rate slowed from 10.5 percent to 3.2 percent over the same period.