For the first time in years China's State Council, the country's cabinet, has warned against a possible economic slowdown.

The warning came in a circular on 2008 macro-economic controls, released on Tuesday.

The government says it will continue with prudent fiscal policies and tight monetary controls. It also made clear the government will not hesitate intervene with price adjustments if necessary to avoid waves of price hikes.

When adjusting macro-controls, the government will take into account changes in the economy and major economic and social problems.

Macro-economic controls will be adjusted to avoid overheating on one hand, and an economic slowdown on the other, to avoid major fluctuations in growth.

The circular reflects the cabinet's concern that an overseas economic recession may threaten China's growth rate.

For more details, please read the full story in Chinese (http://www.dfdaily.com/node2/node27/node260/userobject1ai67486.shtml)

(China.org.cn April 2, 2008)