Chinese Premier Wen Jiabao warned his people to keep a "sober mind" about the challenges ahead in the new year as the country welcomed the arrival of the Year of the Tiger with noisy celebrations today.
"In 2010, China will face a more complicated situation, both at home and abroad," state news agency Xinhua paraphrased Wen as saying, in remarks carried in major newspapers.
"People must "keep a sober mind and an enhanced sense of anxiety about lagging behind", the premier added.
Priority should be given to "persistence in taking economic development as the central task, forcefully promoting reform and opening up ... and doing a better job responding to the global financial crisis, in order to keep steady and relatively fast economic development".
The government is trying to maintain a balance between the economic growth needed to create jobs for the country's 1.3 billion people, and not letting the economy overheat and drive up the cost of basic goods and housing for residents.
China raised the level of reserves banks must hold for the second time this year on Friday, spooking financial markets on the eve of its New Year holiday by showing it was intent to curb lending and inflation.
"All the things we do are aimed at letting people live more happily with more dignity," Mr Wen said.
China powered to 8.7 percent growth last year, by far the strongest of any major economy, driving demand for everything from Chilean copper to Australian iron ore.
"Prices are going up and customers are worried about inflation, but today I've knocked down the prices so I can go home early," said Beijing vegetable seller Li Chunmei.