BEIJING, March 21 -- The country's 11th Five-Year Plan (2006-10) marks a shift away from the traditional extensive growth mode almost exclusively geared to GDP increase, to a more intensive one guided by scientific concepts of development and orientated towards balanced and harmonious growth.

    In his report on government work delivered to this year's session of the National People's Congress on March 5, Premier Wen Jiabao said that accelerating the re-alignment of the economic structure and promoting the transformation of economic growth mode constitutes one of the overriding tasks during the 11th Five-Year Plan period.

    The premier went on to say that the crux of the problems springing up in the course of China's economic development lies in irrational economic structure and in the extensive growth mode.

    It follows, therefore, that high-tech industries, manufacturing and energy sectors will enjoy priority in the next five years.

    Information, financial, insurance, logistics and tourist sectors will also be largely promoted.

    Bringing about an energy-saving and environmentally-friendly society features prominently in the 11th Five-Year Plan. A number of projects regarding a cyclic economy, ecological-system protection and pollution treatment have already been planned in order to raise energy-use efficiency and stave off environmental deterioration.

    Over a fairly long period of time, the country's economic advances have been achieved at the expense of the environment.

    This is going to be changed. The environment and the economy should advance together in harmony, as the five-year plan advocates.

    According to Zhou Shengxian, director of the State Environmental Protection Administration, development under the outdated growth mode resembled combustion, which burnt up resources, produced GDP and left a residue of pollution.

    But the principles of scientific development require that GDP be produced with minimal resource consumption and pollution. Or in other words, the economy should continue to grow, but at the same time saving energy and befriending the environment.

    It is urged that the environment's pollution-holding capability be gauged before any industrial project is initiated. No project shall be launched when the local environment's pollution-holding capacity is at its limit.

    Past experience may provide us with a frame of reference with regard to the mode of economic development.

    During the 10th Five-Year Plan period (2001-06), China's GDP registered an average 9.5 per-cent growth each year. The total GDP volume of 2005, for example, hit 18,232 billion yuan (US$2,257 billion), ranking the country fourth among the world countries. Revenue reached the 3,000 billion yuan (US$369.9 billion) mark and foreign exchange reserves exceeded US$800 billion.

    At the same time, however, disproportionately large amounts of energy were consumed and environmental pollution worsened. Also, innovative power of the nation remained weak, which explains why the core technologies of many Chinese products are patented in foreign countries.