Despite some signs of recovery, dark times lay ahead for the world economy. Acute unemployment still plagues many major economic powers, while sovereign debt risks, not to mention volatile commodity prices and exchange rates of major currencies, stand to bring other countries to their knees. Meanwhile, inflationary expectations are proliferating in many countries, leaving policymakers with the predicament of determining an appropriate time to cease their massive stimulus plans.
Without a vibrant world economy, China cannot sustain recovery on its own. Many Chinese enterprises, for instance, have yet to experience a substantial turnaround and still rely heavily on government support.
The international financial crisis came as a heavy blow to the Chinese economy. But it was also a powerful catalyst to adjust the economic structure and seek more sustainable growth. This will be a long-term process and deserves arduous efforts.
This year China needs to strike a balance between maintaining fast and steady development, economic rebalancing and managing inflation expectations to avert a possible economic "double dip."