Part of the world in the throes of ongoing financial difficulties, China faces significant challenges that are destined to affect global handling of the crisis. A slowdown in growth, the real estate bubble, and government corruption are only some of the issues that concern the Chinese government, and the world is anxiously following the way Beijing is coping with them. Recently, China took two measures that heightened investors' fears that China could slide into a recession. One is lowering the growth target for 2015 to a level of 7 percent, as opposed to growth of 7.4 percent in 2014. The other is lowering interest for a second time in a short period. Many economists are pessimistic about meeting this year’s growth target of 7 percent and recommend encouragement of growth with the help of a relaxed monetary policy and a more proactive fiscal policy.
