(Photo : China Economics)

The gross domestic product of Chine has expanded 7.5 percent in the second quarter according to the official date released last Monday. This is the second successive slowdown in the economic growth of the world's second highest economy.

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Although this data is consistent with the median forecast provided by 10 AFP economists, it showed consecutive weak numbers that could point to economic troubles for the country. This slowdown is considered as the slowest growth since 1990.

The slow growth can be linked to different global economic factors. However, some factors could also be due to some of the new policy choices by the new Chinese government. President Xi Jinping together with Prime Minister Li Keqiang and other major Chinese officials are indicating a new approach as they are starting to cut off the stimulus unleashed during the beginning of the 2008 global financial crisis. On top of this new strategy, the new government also aims to reduce debt and implement new policies to change and open the Chinese economy.

With these new reforms, policies, and actions, the new government says they are more than willing to sacrifice a rapid expansion of GDP for a more stable and higher-quality growth that could create more, higher-quality, and high-paying jobs.

Patrick Chovanec, a longtime China watcher and Silvercrest Asset Management chief strategist, said, "China is facing a period of creative destruction. The creativity part of that is real... and will ultimately be good in terms of redirecting resources in ways that are much more productive." He further states, "but, the destruction part is real, too. So you're going to have sectors that have driven growth over the last several years but now there's massive overinvestment and massive overcapacity. They may actually see significant contraction. Steel, shipbuilding, construction - these are key areas where we already start to see this happening."

China's new government and policymakers are now more focusing on longer-term priorities to further enhance their financial system and later create a more stable economy minimum risk.