Australian Treasurer: China manages structural transition well

Australian Deputy Prime Minister and Treasurer Wayne Swan said Tuesday that China seems to have managed its structural transition from investment-led growth to more consumption-led growth pretty well.

Speaking at the Australian China Business Council (ACBC)'s Canberra Networking Day, Swan commented that a more moderate pace of growth is consistent with a maturing Chinese economy, as well as the Chinese government's target for sustainable, high-quality growth.

Swan said that China will have to keep addressing its big structural challenges like the huge amount of unregulated lending in its financial system and its transition to more consumption-led growth.

"It was encouraging to hear outgoing Premier Wen (Jiabao) say just a week ago that China's continued reform and re-balancing towards domestic consumption would be critical for China's future."

A less breakneck pace of economic growth will also enable more focus on environmental concerns, inequality, and health and safety, he added.

"While some pretty clear risks remain in China's economy, I'm confident that the leadership transition -- currently in its final stages -- will bring a renewed commitment to addressing China's economic challenges."