China has unveiled a new five-year economic plan that puts sustainable development at the centre of its drive towards economic power.

Currently the world's seventh largest economy, China has grown rapidly in recent years as a booming consumer society and emerging middle-class has helped create a new wave of disposable income in the region.

However, growth has come at a cost as an industry-intensive process has eschewed environmental concerns – a strategy that China says it is now looking to change as it targets long-term sustainable growth.

Under the terms of the eleventh Five Year Plan, China will be following a 'greener' blueprint for development, as Deutsche Bank economist Jun Ma told Reuters.

"The new strategy should formally reverse that bias and focus on how to maintain resource sustainability to prevent a rapid depletion of natural resources like oil, coal and water, while slowing down industrial pollution," he explained.

The Chinese leadership, headed up by President Hu Jintao and Premier Wen Jiabao, is seeking to co-opt local officials into the plan, making them accountable for delivering the change towards "green GDP".

Analysts say that this strategy will be judged on two key criteria: limiting immediate pollution as the economy grows and also narrowing the gulf between rich and poor by pursuing sustainable economic growth as money flows into the country.

However, while economic reform is at the forefront of state officials' minds, there is no indication yet that the yuan will be unpegged as part of currency liberalisation.



Ÿ Adfero Ltd