As China's emerging middle class becomes increasingly urbanized, there's a need to shift from being a nation of savers to one of smart investors and consumers, former US treasury secretary Henry Paulson told a panel of executives at the Fortune Forum in Chengdu on Friday.

"The Chinese economy is getting bigger and bigger and its growth is set to slow down in the future," he said.

"China should adopt a different development model for long-term prosperity and sustainable development."