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China to Power Ahead in 2010

China could record steady 10 percent growth starting in 2010, following the positive economic data out from the country, said Tim Condon, head of research Asia at ING Financial Markets, Friday.

"The data today clearly allays the fear that there is going to be some sort of a crash in the economy that's triggered by a sharp cut back in bank lending," Condon told CNBC.

China's August Industrial output expanded at an annual rate of 12.3 percent from the year before, its fastest pace of growth in 12 months. New lending by Chinese banks also rebounded in August and money supply growth accelerated as banks continued to pump money into the world's third-largest economy.

"I suspect that details will show that medium- and long-term loans within that figure still remain very, very abundant. Nothing coming from the policy side to slow the return of potential growth in 2010, which is our forecast back to 10 percent growth next year. And I think this is very sustainable."



China has successfully engineered the shift away from an economy driven by export-led growth to one based on domestic demand-driven growth, he noted.

"The potential there is enormous," he said. "The development of the west, unleashing productivity by improving infrastructure, I think that this is a significant year for China and I think steady 10 percent growth starting in 2010 again is the baseline scenario."