The yuan exchange rate has potential to appreciate against the US dollar in the medium term if the Chinese economy can achieve high-quality development and grow at medium speed, said Liu Shijin, a member of the People’s Bank of China’s Monetary Policy Committee, Yicai.com reported.

Over the past seven or eight years, the Chinese economy has generally shifted from high-speed growth of about 10%, to medium-speed growth, Liu pointed out.

In the next two years, growth should be at about 6.2% or more, while after 2020, it could be between 5% and 6%, according to Liu.

In terms of the real estate sector, the peak of historical demand appeared a few years ago and the period of rapid growth has passed. It would be no surprise even if real estate investment saw negative growth in the future, he added.

Liu also thinks there is not much room for further tax cuts, as the government has spent a lot on improving people’s livelihoods.

More tax cuts could involve adjustments of government departments and require corresponding reforms. Instead, to further reduce the burden of enterprises, the government should focus on reducing their social contributions, Liu said.