(Yicai Global) July 24 -- China's economic growth could rise back to 7 percent in the next two years, Chinanews.com reported today, citing Li Daokui, a former monetary committee member at the People's Bank of China (PBOC) and a professor at Beijing's prestigious Tsinghua University.

The global economy has kept improving, China's supply-side economic reform has produced substantial results, and local governments have taken active measures, all of which will boost China's economic growth this year, Li said.

The elimination of some excess capacity as the producer price index has fallen for the 54th consecutive month this year shows some 'toxins' being purged on the supply side. As the communist party's 19th National Congress approaches, local governments are all scrambling to entice investment to turn the economy around. This year will see China' economy hit a trough, with growth likely to pick up in 2018-2019.

Supply-side structural reform has kept China's economy stable and propelled it in a proper direction. Economic growth has stayed at the medium-to-high level of 6.9 percent for two consecutive quarters this year, higher than the 6.7 percent gains in three straight quarters last year, data show.