Wen warns of challenges as China readies for new year

Chinese Premier Wen Jiabao warned his people to keep a "sober mind" about the challenges ahead in the new year as the country readied to welcome the arrival of the Year of the Tiger with noisy celebrations on Saturday."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".

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.