China at a Key Stage of Turning Recovery into Stable Growth

The National Bureau of Statistics has released China's economic performance figures for 2010. They indicate that the country is "at a key stage of turning recovery into stable growth."

Tingting has the details.

The National Bureau of Statistics says China's economy resumed an annual double-digit growth by expanding 10.3 percent last year. Its GDP hit nearly 40 trillion yuan, or roughly 6 trillion U.S. dollars. Consumer prices rose 3.3 percent, higher than the expected 3 percent.

Ma Jiantang, head of the National Bureau of Statistics, says that China has made "extraordinary" achievement in making those figures possible.

"Despite the extremely complicated global economic environment and various natural disasters last year, China not only maintained its good momentum of economic recovery, but managed to keep retail prices at a predictable level."

Investment, exports and consumption are considered to be the three main factors dragging an economy. According to the newly released data, these factors have been operating well, and more importantly, in a more coordinated manner.

End consumption contributes 3.9 points to the GDP growth, with capital formation making up 5.6 points, and the export and import of goods and services, 0.8 points.

The attention-grabbing CPI, a main gauge of inflation, rose 4.6 percent in December year on year. Though 0.5 percent down from November's alarming 5.1 percent, it is still much higher than the expected annual 3 percent target.

There is cause for concern as to whether the government will be able to contain inflation effectively.

Ma Jiantang from the Statistics Bureau says that the government's "prudent" monetary stance will help tame inflation.

"For example, China's central bank has increased the reserve requirement ratio for a total of seven times since 2010. It also raised interest rates twice last year. These measures will curb liquidity and create a favorable foundation for our work."

He points out that China's seventh consecutive year on grain output growth, and the supply-exceeds-demand status of its industry products will also help curb inflation in this year.

For CRI, I'm Tingting.