"Despite some partial frictions and problems that recently occurred and the emergence of what seemed like bubbles in some markets, China's national economy does not appear to be generally overheated."

Chen Dongqi, deputy-director of the Academy of Macroeconomic Research under China's National Development and Reform Commission, made the above remarks at the "2006 China management science forum and the 8th China managerial innovation conference" held in Beijing on the 26th.

Chen said that in the first quarter this year, China's GDP rose 10.3%, which was indeed higher than the secular trend average since the implementation of reforms and opening-up policies. However, the recent rapid growth of the economy is fairly persistent, maintaining a trend of "growing steadily" without getting off the track of "stable and comparatively rapid growth". Some markets have very noticeable bubbles and a second round of "partially overheated symptom" has appeared in this economic cycle. Nonetheless, the structure of overall supply-demand balance remains undisturbed and there is no obvious imbalance in the overall supply and demand.

This economist warned that some partial frictions and problems have recently occurred in China's national economic operations and some productive sectors are developing too rapidly, while the national economy has seen no overheating as a whole. Considering either the requirement of short-term balance in economic aggregate or the need for short-term sustainable growth, it is inadvisable to push the economy into a "hard landing" by implementing comprehensive tight macro-control policies.

Like the "first-time control" conducted in 2004, the "second-time control" set a short-term goal of controlling the accelerated pace of economic growth, squeeze out the bubbles and prevent the imbalance of economic aggregates. The long-term target is to avoid an economic recession after years of super-prosperity.

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