(China Daily)
Updated: 2007-12-06 06:47

The year of 2008 will be a big year for China not only because of the Olympic Games that Beijing is to host. For the Chinese economy, next year will also be particularly remarkable for critical progress in the transformation of its growth pattern.

The annual Central Economic Work Conference that opened on Monday saw the Chinese authorities working on strategies and measures that the country needs to advance its pursuit of energy-saving, environment-friendly and sustainable growth.

On the back of five years in a row of double-digit growth, the Chinese economy is surely still on course to expand rapidly in 2008. Thanks to both robust growth of investment and export and a considerable acceleration of domestic consumption, the national economy is well expected to surge by 11.5 percent this year.

However, a big year does not necessarily mean faster growth. Instead, in view of the long-term health of the national economy, the central authorities are attaching unprecedented importance to the quality of growth over the speed.

To achieve sound and fast economic growth next year, the government must continue to strengthen macroeconomic control to prevent the economy from overheating and the current price hikes from evolving into overall inflation.

With many tightening measures already in place and a firm government stand, it is more than likely that the country's sizzling capital spending and bank lending can be effectively checked next year.

Meanwhile, an equally important task, if not more important, for China to fulfill in the coming year will be speeding up its progress on saving energy and cutting pollution fast enough to meet its five-year energy and environmental goals.

China has made it a top priority to cut energy use per unit of GDP by 20 percent and reduce key pollutant discharges by 10 percent between 2006 and 2010. By the end of next year, China will take stock of its actual achievement on these aims.

Lack of progress in the early phase of the five-year plan means that the country has to substantially quicken its pace on raising energy efficiency and cutting pollution in the remaining years.

Hopefully, increasingly aggressive implementation of energy-saving and environmental laws and policies will enable the country to shift steadily away from its extensive growth path.

(China Daily 12/06/2007 page10)