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The international economic situation in 2013 has generally been better than last year. However, China's domestic economic structural problems remain, while risk levels have increased.

Two potential issues loom: a decline in medium- and long-term growth rates, and a weak short-term recovery. Future macroeconomic policy should follow established policies, and strike the right balance between stabilizing growth, controlling inflation, and avoiding risk. Sustained reform would help unlock potential growth, stabilize investment, and expand consumption. Innovative industry-specific regulation can help resolve overcapacity issues and facilitate economic restructuring. Tightening certain macroeconomic controls while relaxing others can gradually reduce fiscal and financial risks and improve the quality of economic growth, increasing the sustainability of China's ongoing economic stabilization.

For detailed information, please download the PDF.