Central Bank Adviser, According to Reuters

CHENGDU, China – Downward pressure on the Chinese economy remains significant, but it is expected to grow by more than 6.5 percent this year, according to Bai Chongen, a policy adviser to the central bank and professor at Tsinghua University.

Bai noted that while the economic pressure remains considerable, achieving over 6.5 percent growth should not be problematic. He emphasized that Chinese policymakers have made substantial efforts regarding monetary policy, and he believes that tax cuts would be more effective in stimulating growth compared to interest rate cuts at this stage.

"We have made considerable progress on the monetary policy front. Fiscal policy should take precedence," Bai stated.

China has set a growth target of 6.5 percent to 7 percent for its GDP in 2016, following a drop to a 25-year low of 6.9 percent in 2015.