BEIJING - China's economy is stabilizing, but its development will "face various challenges that should not be underestimated" next year, the Political Bureau of the Communist Party of China (CPC) Central Committee warned on Tuesday.

China will "maintain continuity and stability in its macro economic policies, make them more targeted and effective, and predetermine or fine-tune these policies at an appropriate time and in an appropriate way," said a statement issued after a political bureau meeting, presided over by Xi Jinping, general secretary of the CPC Central Committee.