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China has set its heart on achieving a soft landing for economy as the government announced to continue proactive fiscal policies and prudent monetary policies in 2012.
The policies could be adjusted slightly in accordance with the changes of the situations to make them more targeted, more flexible, and more forward-looking, according to a official statement.
The growth of the world's second-largest economy showed a downward trend in the past year.
In 2012, the external and domestic factors which may have negative influences on Chinas economy are still uncertain. Dim property market, slowing growth of export, struggling small and medium-size firms -- the complicated situation made concerns about the outlook of Chinas economy increased.
However, some economists and analysts thought that there's no need to be pessimistic about Chinas economic prospect.
A report issued by the Standard & Poor Corporation forecast that China's economy will realize soft landing this year.
China's economy is expected to expand by 8.5 percent in 2012, slightly down from 9.2 percent in 2011, said Li Wei, director of the Development Research Center of the State Council, or China's Cabinet last Thursday.
A relatively significant slowdown would keep on this year due to increasingly complicated domestic and overseas situations, Li noted.
But he stressed that a moderate economic slowdown will help to curb inflation triggered by excess demand and also encourage more mergers and acquisitions, which will speed up the adjustment of China's economic structure.
On lessons learned from Japan and South Korea, Li warned that once the potential economic growth rate begins a downward trend, expansionary measures cannot increase the growth rate, but only lead to a "bubble" economy.
The biggest challenge for China is how to expand domestic demand further and reduce dependence on external trade, said Li Daokui, a member of the monetary policy committee of the People's Bank of China (PBOC), in an interview with China Securities Journal. |
