Chinese enterprises may face their "toughest" year in 2012, according to the annual China Enterprise Development Report released by the State Council's Development Research Center, the Economic Information Daily reported.

As the global economy continues to face mounting challenges, China's economic growth looks likely to slow down. The main problems facing Chinese enterprises include sluggish market demand, increasing labor costs, more expensive raw materials, tight land supply, the appreciation of the yuan and pressures caused by the need for environmental protection.

Zhao Changwen, an expert from the State Council's Development Research Center, advised Chinese enterprises to respond calmly to the changing situation.

He added that enterprises should constantly work to adjust their structures and be prudent with regard to their investments, acquisitions and plans for internationalization.