With the world economic turmoil and external shocks intensified, China began in 2003 from a "soft expansion" economic cycle near the end. China will enter a new round of economic cycle from 2008, is expected to a new round of economic cycle fluctuations in the basic model will remain "valley peak mixed" mixed growth cycle. 2010, the main outline of China's economic cycle will continue to stabilize the situation, macroeconomic regulation should not only focus on local stability and long-term stability, but also stressed the short-term effectiveness and long-term balance. Robust policy operations will conditionally loosen to more effectively manage both aggregate demand and aggregate supply.