Nine economic dilemmas in 2010

Next year will be a litmus test for China's macro-economy: On the one hand, the continuation, or expansion, of the stimulus package may lead to a quick short-term rebound and an overheated economy; on the other, if the stimulus is rolled back, policy-stimulated demand will contract sharply and the newly-introduced and incomplete market dynamic mechanisms will come to a premature end.

Currently, China confronts a "dilemma" in a variety of fields.

First is how to deal with economic restructuring in a recovery dominated by heavy and chemical industries. The sluggish export and housing markets in 2008 inflicted serious losses on heavy and chemical industries, which later became the main target of the government rescue plan. So, heavy and chemical industries saw the strongest rebound in 2009. But the tendency of this recovery, it appears, is not in line with China's structural readjustment goal and the planned new path of industrialization.