Jackson Hole: China`s economy is entering a treacherous phase as it moves away from traditional sources of growth like heavy manufacturing and real estate investment, but has yet to complete the transition to a new model, a prominent Chinese economist said on Friday.
"The Chinese economy has entered into a very tricky and difficult period ... Officials are worried," David Daokui Li, a professor at Tsinghua University, said at an annual global central banking conference here.
"Right now we are stuck with today`s economy" with more reforms needed to fuel economic growth more through domestic consumption and the services sector, Li said.
China`s recent stock market sell-off reflected that transition, reflecting some loss of confidence about growth but also a "healthy price adjustment" to the share of legacy industries like iron and steel production, he added.
