Q&A: What lies ahead in 2015 for Chinese economy?

BEIJING - It is almost certain that China will post its lowest growth rate in more than a decade in 2014, but experts seem uncertain about what will happen in 2015.

Here we review the outlook and risks for Chinese economy in 2015:

 Is the economy sliding toward a hard landing?

Growth in 2014 looks likely to have sagged below 7.5 percent. This year, it could potentially dip lower, with property downturn and industrial overcapacity still being the main drags.

The government's efforts to balance reform with growth will also exert a downward pressure, but it will be a soft landing rather than a sharp contraction, as the broader economy and job market remain healthy.

There have been signs of a rebalancing, with services accounting for a greater share of output than manufacturing; and consumption accounting for a larger share of gross domestic product (GDP) than fixed asset investment.

Moreover, policies, such as the abolition of registered capital requirements for new firms and the replacement of business tax with value-added tax, will provide dividends.

Government think tank economists have lowered forecasts for GDP growth for 2015, with the rate hovering between 7 percent and 7.3 percent.

Read more: http://www.chinadaily.com.cn/