China's 'new economy' is rapidly rising with a more balanced and sustainable growth rate thanks to its enhanced capabilities for innovation, according to a China Media Group (CMG) commentary published on Monday.

Innovation the powerhouse of China's economy

Trade tariffs imposed by the <a href="https://www.wionews.com/business-economy/oil-prices-rise-escalating-us-china-trade-war-caps-gains-240974">United States against China</a> will moderately slow the country's <a href="https://www.wionews.com/world/us-president-trump-says-us-not-ready-to-make-trade-deal-with-china-241860">economic growth</a> this year, the International Monetary Fund (IMF) said on Friday.

"Growth is projected to moderate to 6.2 per cent in 2019 as the planned policy stimulus partially offsets the negative impact from the US tariff hike on USD 200 billion of Chinese exports," the IMF said in its report.

The global monetary body called on Beijing to resolve tensions with Washington "through a comprehensive agreement that avoids undermining the international system".

The IMF said that the Chinese economy is facing external headwinds and an uncertain environment. It added that rising food prices led to inflation, which is expected to remain at 2.5 per cent.

Meanwhile, the IMF found progress in China's reforms in key economic areas.

"The strengthening of financial regulations and control over off-budget local government investment has reduced the pace of debt accumulation, helping contain the build-up of risks in the financial sector," the report said.

"Opening up continued, with decreases in tariffs, the passage of new foreign investment law, and revisions to the negative list for foreign investment entry," it added.&nbsp;

Moreover, the IMF urged China to implement further structural fiscal reforms. This policy can enhance medium-term growth.

Trade tariffs imposed by the United States against China will moderately slow the country's economic growth this year, the International Monetary Fund (IMF) said on Friday.

Trade tariffs imposed by the United States against China will moderately slow the country's economic growth this year, the International Monetary Fund (IMF) said on Friday. "Growth is projected to moderate to 6.2 per cent in 2019 as the planned policy stimulus partially offsets the negative impact from the US tariff hike on USD 200 billion of Chinese exports," the IMF said in its report. The global monetary body called on Beijing to resolve tensions with Washington "through a comprehensive agreement that avoids undermining the international system". The IMF said that the Chinese economy is facing external headwinds and an uncertain environment. It added that rising food prices led to inflation, which is expected to remain at 2.5 per cent. Meanwhile, the IMF found progress in China's reforms in key economic areas. "The strengthening of financial regulations and control over off-budget local government investment has reduced the pace of debt accumulation, helping contain the build-up of risks in the financial sector," the report said. "Opening up continued, with decreases in tariffs, the passage of new foreign investment law, and revisions to the negative list for foreign investment entry," it added. Moreover, the IMF urged China to implement further structural fiscal reforms. This policy can enhance medium-term growth.

Trade war with the US to moderately slow down China's economic growth in 2019: International Monetary Fund

China's economic growth slowed to 6.2% in the second quarter, its weakest pace in at least 27 years, as demand at home and abroad faltered in the face of mounting U.S. trade pressure. Watch this video to know more.

China: Economic growth slowest in 27 years