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BEIJING : Just as for other economies in the region, it was a rocky start to the year for China, caught in the turmoil of the global financial crisis.
But with a strong rebound in the second half of 2009, the economy looks set to surpass the 8 per cent growth target for the year.
According to some experts, the figures will show China contributing more than half of the world's GDP growth in 2009. And it looks set for another strong year in 2010.
The Chinese economy is seeing a sharp turnaround in the second half of 2009. And it is projected to grow by 8.9 per cent for the whole year, more than meeting the official 8 per cent target.
The growth momentum began in the third quarter, and is seen spilling over into the new year.
Stephen Joske, director of China Forecasting Service, Economist Intelligence Unit, said: "We expect average growth in 2010 to be surprisingly similar to this year, just over 8 per cent...
"It sounds smooth if it is the same as this year, but in reality, there will be a bit of cyclical pattern through the year. I think it will be associated with the winding down of the stimulus package."
Millions of migrant workers lost their jobs as factories had to shut down amid a sharp drop in exports because of the global slowdown.
With robust growth seen as key to maintaining social stability, the Chinese government pumped in US$586 billion to boost key industries and domestic consumption. Infrastructure projects were brought forward, while subsidies were given out and lending policies relaxed to encourage spending.
The efforts paid off - China's automobile sales, in particular, soared through the roof as other countries struggled with dwindling customers.
With China seen as leading Asia out of the global recession, it is being hailed as a major stabilising force, while western economies try to get back on their feet.
But despite its growing stature as a major economic power, Chinese leaders are cautious about taking the lead in international affairs, for within itself, the country is coping with unprecedented challenges.
For one, China has to figure out a sound plan in sustaining growth, while safeguarding the environment. The government said it aims to reduce its carbon intensity by up to 45 per cent for each unit of GDP by the year 2020.
Professor, Zhang Shiqiu, Deputy Dean of Environmental Economics, Peking University, said: "It is a strong political message to the whole community that China is going to place great importance in dealing with climate change and environmental protection. This will have a great impact on consumer and enterprise behaviour."
This means that the coming year will usher in more structural changes in many sectors of the economy, even as China tackles unequal development within its boundaries. - CNA/ms
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