China lowers 2004 GDP target to 7%

China has set a target of seven per cent economic growth for next year, down from this year's projected rate of 8.5 per cent, the state media reported on Tuesday.

The Chinese government's consideration of slowing the pace of gross domestic product growth is aimed at cultivating a "scientific approach" to social development, Minister of the State Development and Reform Commission, Ma Kai said in Beijing on Monday.

"Economic development is not everything for the government and we should pour more energy on other indicators such as education, health, environment and social welfare," Ma was quoted as saying by the China Daily.

"I'm sure China can sustain a faster developing pace, but we must realise the challenge if we ignore the rule of sustainable development," Ma said.

Chinese economists said the target re-adjustment is aimed at curbing excessive growth in some sectors, which are putting a strain on transportation and power suppliers, driving up the prices of raw materials and damaging industries across the country.

Ma said China's economy is expected to grow 8.5 per cent this year. The country's GDP was to top 11 trillion yuan ($1.3 trillion), he added.

The economy showed a good momentum that had been long expected over the past few years, Ma said.