Uphill battle ahead

If the fall of global financial markets on Thursday has anything to do with the absence of an expanded stimulus plan in the government report Chinese Premier Wen Jiabao delivered, investors should pay attention when top economic officials elaborate on China's response to the global financial crisis.

"We have seen some positive signs including recovery of export growth," Zhang Ping, chairman of the National Development and Reform Commission, the country's planning body, said at a news conference yesterday. "It really depends on the changing situation to determine whether we need additional investment."

This remark is particularly reassuring since it shows that anti-crisis policies and measures the Chinese government has adopted have begun to take effect. More importantly, policymakers remain on high alert against worsening global conditions and are ready to react accordingly. Such constant vigilance is essential to China's fight against the economic downturn that may even hit harder than expected.