China will endeavor to maintain steady and fairly fast economic growth and deepen the reform of the economic system, Chinese Vice Premier Zeng Peiyan said in Davos on Thursday.

"To prevent overheating of the economy and inflation is our top priority for macro control this year. We will pursue a prudent fiscal policy and tight monetary policy to ensure general balance between demand and supply and make the economy better structured," said Zeng at a session of the five-day World Economic Forum (WEF) Annual Meeting.

At the session of "special message and conversation" in his honor, Zeng said China will work on transforming the model of growth.

"In promoting economic growth, the focus of our efforts will be shifted from relying mainly on investment and export to stimulating consumption and steadily increasing the consumption rate; from relying mainly on manufacturing industry to promoting the growth of agriculture and services industries and increasing the share of the service sector in economic output," he said.

Zeng said China will deepen economic structural reforms, encourage sectors of different ownership to compete as equals and develop together.

He also made it clear that China seeks promotion of sustainable development.

China has launched a campaign of energy conservation and emission reduction to meet the targets set for 2010 including a 10-percent reduction in the 2005 levels of (sulfur dioxide) SO₂ emission and chemical oxygen demand (COD), he said.

"We are accelerating the pace to eliminate the backward production styles of factories with high energy consumption and pollutant emission, step up the construction of waster water and sewage processing facilities and vigorously develop energy-saving and land-saving housing, and fuel-efficient and environmentally friendly automobiles," he added.

The air conditioning of buildings will be kept at an appropriate level, and energy-saving bulbs will be used throughout the country, he said.

In his speech, Zeng noted that the world today needs to address many problems facing the growth of the world economy.

These problems include greater uncertainties for global economic growth, the rising prices of primary products, resurfacing of trade protectionism, and growing concerns over global climate change, he said.

"The plummeting of stock markets throughout the world in the past few days speak eloquently of how much the market is worried about a possible slowdown or even recession of the U.S. economy," he said.

Financial risks spread faster than before, and one single financial and economic event in a country could cause chain reactions in other parts of the world, he said.

The sub-prime mortgage crisis which broke out in the United States has hurt many transnational financial institutions and its adverse impact on countries concerned has start to be felt, he elaborated.

He expressed his concerns that the prices of primary products are still rising and have raised production cost and consumer spending and led to more inflationary pressure in the world.

Turning to trade protectionism, the Chinese vice-premier said that some countries have raised non-tariff trade barriers and imposed more restrictions on foreign investment.

Such practices hurt the interests of exporters, producers, investors, importers and consumers alike and will ultimately harm the common interests of all countries, he said.

He promised that China are ready to work with the international community to address these risks and meet the challenges and contribute to economic stability and sustainable development in the world.

He noted that since joining the World Trade Organization, China has honored its commitments.

China's average tariff level has dropped from 15.3 percent of the pre-accession years to the current 9.8 percent, and China has abolished non-tariff measures, he said.

"We will continue to promote trade and investment liberalization and facilitation," he said.

While stressing that peace, development and cooperation represent the irresistible trend of the times, Zeng said China will pursue win-win cooperation with foreign nations and accommodate the legitimate concerns of other countries, especially the developing ones.

"We will work with all countries, international organizations and people from all walks of life to harness the power of collaborative innovation, pursue win-win cooperation, seize the opportunities together and share the benefits of development, meet challenges and work hard for global prosperity and progress," said the Chinese official.

The five-day WEF annual meeting started in this Swiss ski resort on Wednesday under the principal theme of "the Power of Collaborative Innovation."

The event drew the world's political and business elite, including 27 heads of state or government, and more than 110 government ministers.

(Xinhua News Agency January 25, 2008)