China should aim at stabilizing the country's economy, said Yin Zhongqing, deputy director from the Financial and Economic Affairs Committee of National People's Congress (NPC). "Bubbles have emerged in the property market, and structural inflation is another problem we should strive to prevent."
China's economy is facing interweaving new and old challenges, said Yin. There is more risks now than during the international crisis.
In 2009, investment contributed most to China's economic growth. In the post-crisis period, stimulus policies effects may be weakened. Incomes of both rural and urban residents could not be vastly improved, making consumption expansion more difficult. Low private investment and local governments' financing problems lead to hardness in extending investment.
"China's economy may face a considerable rise but also risks of huge decline," he said. Economic overheating, rather than recession, is the greatest concern.
"We should strive to avoid the slump after economic boom, avoid the W-shaped growth."
According to data released by China's National Bureau of Statistics (NBS), housing prices in 70 large and medium-sized cities rose 1.5 percent in 2009. NBS' figure has sparked off continuous doubts.
In regards to this issue, Yin noted that the public has experienced a much higher growth. "Rocketing housing prices proved that bubbles have already emerged. Huge fluctuations in the stock market also proved the existence of asset bubbles."
Rising assets prices may be an important factor that leads to inflation, Yin warned.