China Economy Faces Complicated Domestic, International Conditions

China's top economic planner said Thursday that China's economy still faced complicated domestic and international conditions.

The foundation for world economic recovery remained fragile, and uncertain and unstable factors still abounded, said Zhang Ping, director of the National Development and Reform Commission.

Zhang made the statement in his report on the implementation of national economic and social development plan for the first seven months to the 16th Session of the Standing Committee of the 11th National People's Congress (NPC), a bimonthly session running from Aug. 23 to 28.

He identified greater fluctuations in the exchange rates of major currencies and international commodity prices, as well as rising trade and investment protectionism worldwide as the major uncertain factors in the international market.

Domestically, natural disasters including floods and landslides had resulted in heavy losses nationwide and added difficulties for raising grain production, he told the lawmakers.

Other challenges include the heavy pressures in reaching the target of improving energy efficiency (the ratio of energy consumption to gross domestic product) by 20 percent from 2005 to 2010 and in managing inflationary pressure, he said.