China has what it takes to achieve a "new normal" economy, said Liu Mingkang, a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), during a panel discussion at the height of the ongoing annual sessions of the NPC and CPPCC in Beijing.

Liu Mingkang, former chairman of the China Banking Regulatory Commission and deputy director of the Committee for Economic Affairs of the CPPCC's national committee. [Photo by Guo Yiming / China.org.cn]

"A 'New Normal' indicates a state of slowing but quality economic growth," saidLiu, former chairman of the China Banking Regulatory Commission and deputy director of the Committee for Economic Affairs of the CPPCC's national committee.

The world's second largest economy cut its growth target for this year to a range of 6.5 to 7 percent last Saturday, after the country revealed its lowest growth rate in 25 years at 6.9 percent throughout 2015.

Many observers say the country has already entered a "new" phase, shifting from high to medium-speed growth, but the "normal" pattern which features structural optimization and quality improvement in support of the economic bottoming out is yet to come.

Liu, however, looks on the bright side, asserting that China has unique conditions to achieve this. He said that the country has a great amount of room to further improve the rule of law, which is, in his words, a key driving force for socioeconomic growth throughout the next five years which will boost investor's diminishing confidence.

Concerns over China have roiled global markets amid waning investor confidence both at home and abroad. Billionaire George Soros has said that China's hard landing is practically unavoidable, a slump that will worsen global deflationary pressures and drag down stocks.

Ponzi schemes like Ezubao, a peer-to-peer online lending platform accused of fleecing US$7.6 billion from over hundreds of thousands of investors, also raised a flag in China's booming private financing sector, giving rise to calls for legislation and supervision for investor's benefit.

Liu said that increased transparency, certainty in the rule of law and a timely improvement of legislation should unleash new momentum for growth.

The former banking regulator also noted that lifting market access for non-public enterprises and the ongoing supply-side reform featuring the reduction of overcapacity, destocking, deleveraging and costs while shoring up weak growth areas can also provide what it takes to deliver a "new normal." However, improving the efficiency of capital allocation in China's financial system is essential in this process.

Moreover, Liu stressed the importance of a pro-innovation environment and advised to the improvement of intellectual property rights protection in order to boost creativity and entrepreneurship. "The culture of innovation is something that should prepare for possible errors," said Liu, who called for tolerance of failure and mistakes.