Prices, balance growth expected to be priorities for 2011 economic policies

China's central economic work conference will convene this weekend in Beijing. It's the highest level economic meeting and will outline the country's policies for the next year.

China is now the world second largest economy. But the economic giant is also confronting mounting challenges to sustain its fast growth. With this in mind, the government will soon map out next year's economic policies. For many Chinese, the more pressing issue is rising prices.

A Beijing resident said, "Rising consumer prices and housing prices are worrisome. I hope the government can come out with some effective policies to curb the trend of rising prices. "

Analysts predict the government will set next year's inflation target at 4 percent. That's one percent higher than this year's target.

Facing increasing inflationary pressures, the Chinese government is expected to change its monetary stance to prudent next year. Banks will lend less, limited to some 6.5 to 7 trillion yuan, analysts have predicted.

Sources say China's economic growth target for 2011 is to be set at 8 percent. The figure is unchanged from this year, but inclusive growth will be stressed.

As for fiscal policy, the market is expecting the government will favor spending in education, healthcare, technology, and social security in 2011.

2011 is the first year of the next five year plan. It will be crucial for the country's economic transformation. The country must maintain rapid economic growth. but what's even more important is that the quality be balanced, sustainable and benefit all.