Editor's Note:

According to data recently released by local governments, several major developed cities in China such as Beijing and Shanghai have achieved relatively low GDP growth in the first quarter of 2012, lower than the growth targets of 7.5 percent for national GDP this year. Shenzhen reported quarterly GDP growth of just 5.8 percent, the lowest level in decades. Why is growth slowing? What are the consequences for the wider Chinese economy? Phoenix TV (PTV) talked with Zhu Wenhui (Zhu), a commentator of current affairs, on these issues.

PTV: Commenting on the GDP growth data, Xu Qin, the mayor of Shenzhen, recently said that Shenzhen has passed the stage of rapid economic growth and is undergoing an economic restructuring. But will this mark the beginning of further decline?

Zhu: It took some courage for Shenzhen to publish the quarterly GDP growth of just 5.8 percent.

Shenzhen should get some credit for honestly publishing the real growth data, despite various pressures. After all, Shenzhen was at the forefront of reform and opening-up and is now undergoing structural economic transitioning.

Shenzhen is not like other major cities that have much more available land to use. While many cities are still pushing forward the urbanization process, Shenzhen is already overcrowded, with a total population of 15 million.

Therefore, to ensure more sustainable development for Shenzhen, moderately reducing the overall population while properly registering more people can be a good strategy to adopt.

In this regard, releasing the quarterly growth of 5.8 percent may be a good thing, since it helps push forward structural transitioning.

PTV: What implications can economic slowdown in coastal cities bring for the wider Chinese economy?

Zhu: The investment-boosted or industrialization-driven growth model has basically played out in many coastal cities. It is high time for them to slow down a little bit, given the fact that per capita GDP in some cities has already exceeded $10,000.

The real estate industry is still the biggest driving force of economic growth, especially in inland cities. In coastal cities, the service industry may have the biggest growth potential.

We should recognize that the slowing down of economic growth in coastal cities is good for China's long-term development.

Local leaders must be given enough time to make the shift toward economic restructuring. Different regions should focus on different development paths and should be evaluated with different criteria.

Thus over the course of the next 10 years, we may not see breakneck growth rates anymore. Rather, we can see economic growth that is more environmentally friendly.

This is why we should encourage Shenzhen to be a "underdog" in the growth race so that they can better do the job of restructuring and work out a new growth path for the rest of China.

PTV: Some say weak exports may have contributed to the recent slowing down of growth in Shenzhen. China's Vice Premier Wang Qishan recently visited several regions and set the annual foreign trade growth baseline at 10 percent. Can this goal be met and what kind of difficulties can be expected?

Zhu: I think it's very difficult to guarantee 10 percent growth for exports. But the goal Wang has put forward can be broken down into two parts, with an export growth rate no less than 8 percent and import growth rate no less than 12 percent.

This could be the rebalancing of foreign trade that the US has been concerned with.

China is already the world's biggest exporter. If we continue to export as rapidly as we did in the last 10 years, it cannot be good for China's resource endowment and environmental protection. Plus, it could invite more pressure from the international community.

China has been the biggest victim of protectionist practices in international trade for years.

In this sense, future export growth should be driven by the improved quality of products with higher added value, rather than the old way of exporting a huge volume of low quality products.

At the same time, I want to mention a view that I've held for a long time. We should shift our export targets from developed countries to developing countries.

I saw many people from underdeveloped countries at the recent China Import and Export Fair in Guangzhou. South American countries such as Bolivia and Peru have great interest in China's mechanical and electrical products. Motorcycles made in Chongqing sell well in such countries. This deserves our attention.

PTV: What about the import industry in Chinese cities?

Zhu: The more important thing is to aim for an import growth rate at 12 percent, which I think is good for China.

With some cities' per captia GDP already above $10, 000, the demand for consumer durables has soared, which requires huge amounts of raw materials.

A big chunk of these will have to be imported. The deeply rooted prejudice that exporting is superior t0 importing must be changed.

Over time, China's foreign trade will be gradually rebalanced. Besides, having a certain degree of trade deficit could give China more advantage in occasions like the China-US Strategic and Economic Dialogue and ease the pressure for appreciation of the yuan.