The economy is stabilizing despite a slower growth pace, Li said at Summer Davos held in northeast China's port city Dalian. "On the one hand it is turning for the better while stabilizing; on the other hand difficulties remain," Li said.

Many of today's most successful Chinese entrepreneurs such as Alibaba, Xiaomi, and Tencent know that they are riding and contributing to a historic wave of economic activity. These Chinese entrepreneurs have thrived, in part, because they created companies able to change as China changed.

Sir, Praise to George Magnus for setting out so plainly a few of the hurdles facing China’s leadership, especially the recentralisation of power and its intrusion into economic policymaking

The downturn of global financial and foreign exchange markets, is causing concerns in the Americas. A Chinese trade and investment focus on the “Pacific Pumas” would be a prudent strategy and help reduce tensions and suspicions between the U.S. and China in the region.

Moderating growth rates in the range of 5-7% per annum reflect the higher per capita income level and the changing growth paradigm in China. A modest slowdown is a necessary and healthy adjustment for China to transition to a new trajectory of more efficient and sustainable growth. But instead of greeting such a positive "new normal" with enthusiasm, the naysayers have reacted with dismay as though they would rather prefer the old growth model.

The shifting exchange rate reflects the strength of the dollar, not weakness of the RMB. The two nations and business communities should focus on identifying the complementary sectors and products of the two countries and seeking a sustainable pattern of stable growth based on mutual benefit.

A long-term stable RMB exchange rate with a two-way volatility is conducive to maintaining the financial asset price, to preventing a large-scale capital outflow, to controlling foreign-debt risk, to reducing the cost and burden of debt financing and to stabilizing economic growth anticipation.

China has entered into a crucial period of comprehensive deepening of reform. Reform carried out in some areas has already addressed quite a few chronic problems. Other major reform initiatives are under deliberation as well.

Tectonic shifts are occurring in the economy, financial markets, geopolitical strategy, and social policy. The ultimate test may well lie in managing the exceedingly complex interplay among these developments. Is China’s leadership up to the task, or has it bitten off too much at once?

As the Fed is paving way for the first rate hike in a decade, the world economy prepares for the greatest shift of capital flows in five years. Recent market turmoil in the U.S. and China heralds the transition.