A former economic advisor to the White House has addressed this year's Diggers and Dealers Mining Forum, and told those attending to keep faith in China's future demand for steel.

Gene Sperling – advisor on economic policy to both Barrack Obama and Bill Clinton - believes China will continue to grow at a rate of 7 per cent.

Mr Sperling – who is now a consultant for Pacific Investment Management Company (PIMCO) - said Australia had seen some phenomenal growth on the back of China's rapid industrialisation, but must now accept that it is slowing down.

“If something seems too good to last forever it probably will be too good to last forever,” Mr Sperling said.

“You have to deal with the situation as it comes, both good and bad, and you have had a lot of both in the last 15 years.”

“You would all prefer it was 2011 ... life would be better and people would be smiling more.

“But you get judged on how you deal with the hand that you are dealt.”

Mr Sperling was asked whether he thought the Chinese economy was growing as fast as the government claims.

He said in regard to China's residential property market, he had certainly seen a slowdown on a recent trip.

“I have never seen so many blocks of apartment buildings with nobody in them,” he said.

“It is staggering and there is no question that there is much of that going on throughout China.”

But, he added, that does not wholly reflect China's overall growth strategy.

“I actually don't think things are as bad as people are predicting,” Mr Sperling said.

“It is kind of remarkable to remember how much growth there was.

“China in 2003 was only 10 per cent of resource exports of Australia; [up to] 60 per cent in a decade. Unbelievable growth of steel consumption.

“I don't buy into the hard landing in China, they could easily have 10 to 15 years left of 7 per cent or higher growth.”

Mr Sperling said local companies should look five years ahead and consider India as the next target to create growth for the industry.