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China faces extremely complex situation for development in 2011: report

0 CommentsPrint E-mail Xinhua, March 5, 2011
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China faces an "extremely complex situation for development" this year, according to a government work report to be delivered by Premier Wen Jiabao on Saturday.

Some long-term and short-term problems in the country's economic activities are intertwined, and institutional incongruities and structural problems are stacked up together, making macro-control more difficult, reads the report.

"We need to correctly judge the situation, keep our heads clear, be more mindful of potential dangers, and be prepared to respond to risks," according to the report to be delivered at the opening of the fourth session of the 11th National People's Congress (NPC), China's top legislature.

The world economy will continue to recover slowly, but the foundation for recovery is not solid. Economic growth in developed economies is weak, their unemployment rates are and will remain high, and some countries are still under the threat of their sovereign debt crises, the report says.

Major developed economies have further eased monetary policies, global liquidity has increased greatly, the prices of major commodities and the exchange rates of major currencies have become more volatile in the international market, asset bubbles and inflationary pressure have grown in emerging markets, protectionism continues to heat up, competition in the international market is becoming more intense, and there are still many unstable and uncertain factors, says the report.

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