URUMQI - The Chinese economy is on track to fare well this year if recent natural disasters do not disrupt grain supply and fuel high inflation, said Zhao Xiaoyu, vice-president of the Asian Development Bank (ADB).

Despite the fall in July in the country's procurement managers' index (PMI), which measures economic expansion, policymakers will introduce new supportive measures if its economic slowdown continues, making it still attractive for foreign investment, analysts said.

"The only problem for the Chinese economy is the potential impact of the natural disasters on its grain supply," Zhao said.