Macro-economic controls should therefore use both internal and external levers. For example, to soak up liquidity, the reserve requirement ratio and interest rates were raised. On the other hand, export rebates on energy-depleting, high-emission and resource-based products were abolished or slashed, so that the credit expansion could be curbed, trade surplus was trimmed and emission reduction encouraged.

Fourthly, the macro-economic controls are bent on sustainable development. In other words, the controls are blended with economic restructuring, growth mode updates, system reforms and improvements in people's living conditions.

Fresh challenges

In 2008, plaguing the Chinese economy are three fresh challenges.

The first is growing inflationary pressure. The Central Economic Work Conference held in December 2007 attached priority importance to warding off an overheating economy and evident inflation. This entails striking a balance between curing inflation sores and maintaining healthy economic growth with stable employment.

The second is shockwaves sent from international economic waters. For example, the simmering U.S. sub-prime mortgage meltdown may reverberate into world markets. Furthermore, spiraling prices for oil, grain and raw materials in the international markets have cast uncertainties over the future development of the Chinese economy.

The third is the sudden outbreak of massive natural disasters, such as the snowstorms that battered south China in late January and the May 12 Sichuan earthquake. They have added difficulties to macro-control efforts. Take the earthquake for instance. It serves as a dragging force, but also as propulsion to economic growth. Besides taking high death tolls, it wreaked havoc on the production and infrastructures in disaster areas. However, the relief efforts and post-quake rebuilding could widen consumption and investment demands.

In the present economic circle starting from 2000, China's economy has quickened at the pace of 8-11 percent for eight years in a row. This is an unprecedented record in the country's economic history. Due to the stringent tightening policies, the country's economic growth may slow down to around 10 percent this year. But that does not mean a turning point, as the future trend still needs time to express itself.