Policy outlook

China was facing the "most complicated" economic conditions this year and the government would be "very cautious and flexible" in choosing when to withdraw the stimulus policies, Chinese Premier Wen Jiabao said in March.

The country's gross domestic product (GDP) expanded 11.9 percent year on year in the first quarter of this year after a growth of 8.7 percent in 2009.

The World Bank forecast GDP growth at 9.5 percent for this year, according to its report published on June 9.

Zhu Baoliang, chief economist of the State Information Center, said currently the economy was facing "a rather complicated situation and huge uncertainties," so the stimulus policies needed to be retained.

The government has reiterated to continue its proactive fiscal policy and moderately loose monetary policy, and vowed to make proper adjustments according to changes in economic conditions.

The central bank said earlier this month that the foundation of China's economic recovery was not solid and warned that the expanding European sovereign debt crisis and international trade frictions were some of the risks that might have a significant impact on China's economy

The soft landing of China's economy was particularly important in light of recent international events, including the sovereign debt crisis in Europe and relatively weak labor market in the US, the Moody's Analytics said.

"The global economy will continue to rely on China as it was major growth driver for some time to come," it said.

(Xinhua News Agency June 12, 2010)