China has promising growth prospects and should not be blamed for world imbalances, says Danny Quah, a renowned British economist.

"Emergency financing that was placed in the Chinese economy to counter the downturn from the 2008 global financial crisis was the right thing...The imbalances is a global problem, not a China problem," said Quah, a professor at the London School of Economics and Political Science.

China did the right thing in infusing its economy with fiscal stimulus, Quah said.

He also declined to describe the ballooning real estate prices as a bubble, pointing out "the strong fundamentals" of China's economy.

He said the expansion of China's housing construction will be proved useful eventually, given the fact that "China is still engaging in the task of moving hundreds of millions of people from rural areas to urban China to continue to power its manufacturing and industrial progress."

On allegations that China deliberately keeps its currency RMB weak to obtain unfair advantages in trade with countries like the United States, Quah said people who draw such a false conclusion are misguided.

"The United States is running a trade deficit not just against China. It is running a trade deficit against almost 100 other countries," he said. "China is not unique in how it is exporting more to the United States than it's importing."

The U.S. government was beginning to run a large trade deficit long before China's trade surpluses started grow, he added.