China's economy in 2011 faces six challenges, and preventing investment fluctuation will be a major task of this year, said Wang Yuanhong, a senior researcher with the State Information Center, on Wednesday.
According to Wang, the six challenges include:
First, China will face many obstacles in transforming the economic growth pattern.
Second, there is a strong investment impulse across China and higher risk in the financial and monetary system.
Third, the agriculture foundation is weak. The problems of the supply of agriculture products will not only endanger the regulation of commodity prices, but also have effect on China's stable and rapid economic development.
Fourth, the implementation of property control policies, in a sense, will decide the short-term development trend of China's economy this year.
Fifth, although the increase of costs of productions factors, such as labor, will promote the change of China's economic development pattern in the long term, it will also have an impact on the speed of development in the short term.
Sixth, the ongoing efforts to reduce emissions and China's international obligation to prevent global warming will pose a challenge to China's economy in the short term.
Wang said frankly that economic experts from China and abroad have large differences in opinion regarding China's price situation. If the new inflationary factors can be controlled within 1.4 percent, it is expected the CPI in 2011 will be controlled within 4 percent, according to Wang's analysis.
Generally speaking, the incremental speed of economy in this year will slow up, the commodity price will increase and many problems in 2010 are expected to be relieved.
By Liang Jun, People's Daily OnlineMajor headlines
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