Chinese President Xi Jinping urged officials on Tuesday to focus efforts on greater economic reform and innovation amid concerns of an economic slowdown caused by China's corruption crackdown.

Speaking at a seminar attended by non-Communist Party of China (CPC) delegates, Xi said that China should adopt the "bottom line mentality" while at the same time boost efforts to broaden its service sector, develop investment strategies, streamline financial reform, and reorganize its administration to improve the delegation of power.

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He said that despite a competitive global economic market, the country's economy performed within an acceptable range. While it had fallen short of its yearly growth target, China has increased its GDP year-on-year growth by 7.4 percent during the first half of the year.

He urged officials to give their suggestions on reform and increase overall participation to help China's economy grow.

But as Xi's anti-corruption crackdown gains momentum, some experts believe that the campaign may push the economy in the wrong direction.

Economists Nie Wen of Shanghai's Hwabao Trust and Lu Ting of Bank of America Merrill Lynch believe that the economic slowdown may be attributed to the local government's inaction, suggesting that the campaign has effectively put China's government officials on a defensive, self-preservation mode.

Lu said the crackdown has discouraged officials from initiating new projects. Even honest officials may be hesitant to step forward for fear of being perceived or charged with corruption. Therefore, inaction may be seen as the best way for self-protection, he added.

China trade consultant Eric Kalkhurst also predicts a decrease in the performance of Chinese businesses, citing administrative boundaries and reforms that would be imposed on both government officials and businessmen.

For instance, a major drive in the campaign is aimed at reducing extravagance. Regulations have been implemented that would reduce the use of government funds to host events and limit expenses for travel, consequently affecting sales of high-end restaurants and catering businesses.

Kalkhurst said that although the country's forecasts will remain positive, "the real economy will not be as good."

TagsAnti-corruption, bottom line mentality, non-CPC, China's economic restructuring, government inaction, Lu Ting, Nie Wen, Eric Kalkhurst, economic forecast