Flexible macro-control

The Chinese economy is running into stiff headwinds with the gross domestic product (GDP) slowing from 10.6 percent for the first quarter to 10.1 percent for the second quarter and now 9 percent for the third quarter.

The slowdown is sharper than expected and it surely justifies high vigilance against the gradual impact that a worsening global financial crisis and looming recessions in many other economies will exert upon the country.

Chinese policymakers must be ready to demonstrate adequate flexibility and prudence in adjusting macro-economic measures to maintain stable growth. There should be a sense of urgency, but no need to panic.