In 2010 China Economic will meet Seven Challenges(2009/12/4)

Mr Yu Bin from State Council Development Research Center of Macroeconomic Research Department, on 21st said in Beijing this year, China first four-quarter growth is expected to more than 10%, full-year GDP growth will reach about 8.5%. However, he also said that next year China economy continues to face include loose monetary policy and inflation pressure, including the seven challenges.

The first challenge is 2010 years and the real estate industry can be maintained steady development of China economy will have a direct impact. In China, the real estate industry is highly associated with the industry and the national economy, accounting for 6.6% and a quarter of GDP, investment, and real estate industries directly related to 60.

The second challenge is the decline in consumer demand growth. Yu Bin believes that China consumption growth this year reached record levels, and next year the government a series of policies to stimulate consumption, the economic benefits will be gradually weakened. Therefore, even if the maintenance policy unchanged, the incremental spending will also be brought down.

The third challenge is the substantial increase in investment resulting from financial risks. Yu Bin believes that the process of stimulating economic recovery, it is inevitable some very poor economic and social benefits of projects, the future may result in non-performing assets, raise the proportion of China banking sector.

The fourth challenge is the loose monetary policy and inflationary pressures.

The fifth challenge is the depreciation of the dollar and commodity prices.

The sixth challenge is to increase pressure on RMB appreciation.

The seventh challenge is the trade protectionism with trade friction.

Yu Bin believes that the financial crisis, international financial protectionism, trade protectionism is rampant, it would not be conducive to China 2010 exports and economic growth.(by China Leiyuan, 2009/12/4)