China's economic growth will slow to 7.5 to 8.5 percent this year and next, as a eurozone recession curbs exports, Moody's Investors Service said.

While the outlook for the Asian nation's Aa3 foreign and local currency bond ratings is positive, leaders must have "firm control of local government finances" and implement a "new wave of reform", especially in the financial system, to sustain strong economic growth, the US credit-ratings company said in Singapore on Thursday.