Tough policy choices

Premier Wen Jiabao's tough warning that the Chinese economy faces difficulties and challenges despite showing strong growth momentum recently is fresh evidence that the current economic situation, both at home and abroad, is extremely complex.

Last year, policymakers realized that all they had to do to combat the most severe global recession in decades was to stimulate economic growth as quickly as possible.

The higher-than-expected GDP growth of 8.7 percent has demonstrated how successful they have been in countering the global crisis during the most difficult year for the Chinese economy in the new century.