China has, so far, successfully steered its economy through the most difficult global economic conditions since the Great Depression of the 1930s. On this count, China's macroeconomic policies have been a resounding success.
However, China faces significant challenges in the medium term to address growing imbalances in its economy, with growing consumer and asset price inflation the main symptoms of these imbalances. China's macroeconomic levers will need to evolve to ensure the current growth trajectory is sustainable. This is recognised by Chinese policy makers. The period of the next five year plan may prove a pivotal one for the Chinese economy.
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