Blackstone Chairman and CEO Stephen Schwarzman said Wednesday it would be an overreaction to say the current global economic conditions in China are reminiscent of the financial crisis in 2008.
"I think that's going a little far. China is actually slowing, but it's not collapsing," he told CNBC's "Squawk Box" on the sidelines of the World Economic Forum in Davos, Switzerland.
Schwarzman made his comments after China reported its economic growth for 2015 came in at 6.9 percent, the slowest pace in 25 years.
He acknowledged that parts of the economy such as steel and coal production are doing poorly, but the consumer and services sectors are performing well.
"The parts of the economy that are doing pretty well are quite good, and if China can settle down over time to grow at 5 percent long term in the services economy, that would be a good thing," he said. "The disruption as you get there is really substantial."
The government will likely take action that will be "reasonably thoughtful and dramatic" in the residential construction area, where overbuilding is underway, Schwarzman added.
It's also possible for China's leaders to lay off workers from its state-owned enterprises if that becomes necessary, he said.
Blackstone is the world's largest independent alternative asset manager with $334 billion under management as of September, according to the company.
