China's structural reform needs to be accompanied by traditional economic stimulus measures in a time of economic slowdown,according to Yao Yang,head of the National School of Development at Peking University. The following article focuses on the key problems of the economy and offers suggestions for solutions. It was excerpted and translated from an address given to the university's Executive Master of Business Administration New Policy Session 2017 in October.

Today,I would like to share some of my views on the problems faced by China's economy and offer some suggestions for future policies. First,cyclical factors may explain the slowing economic growth rate. The slowdown was wrongly interpreted as a result of structural problems,and the attempt to deal with these structural problems through reform has led to much dissatisfaction. We need to re-examine several conclusions reached on China's economy,particularly on the problems of efficiency,structural reforms and maintaining economic growth. We also need to look at debt levels and the high degree of leverage in the economy.

First,let's take a look at China's debt levels. Why is there so much money sloshing around in the economy? Where is the debt concentrated and how do we reduce this high degree of leverage?

I don't deny that structural problems have contributed to the slowdown. But the key is the global financial crisis which has forced China to reexamine its export-oriented developmental strategy.