Qiu said that the upgrading of China's rural economy and township construction, the increasing market share of State-owned enterprises, the development of western regions and the growing role of market principles will help China develop its economy in a sustainable and healthy way.

Qiu predicted that China's pending WTO entry will also propel development.

"WTO entry will create huge domestic and international markets over next ten years,'' Qiu said.

He admitted that China still needs to work hard to adjust its economic structure and kickstart sluggish domestic markets.

Qiu made the speech at the "21st Century China and Globalization: Problems and Counter-measures,'' held by the Western Returned Scholars Association between Wednesday and today in Beijing.

Some 500 government officials and scholars gathered at the forum to exchange views on future development.

Most of the forum participants have studied abroad or have connections abroad.

Vice-Chairmen of the Standing Committee of the National People's Congress Ding Shisun and Cheng Siwei and the Minister of State Environmental Protection Administration Xie Zhenhua joined the three-day conference and delivered speeches.

Cheng Siwei called on people to recognize the importance of the knowledge-based economy, analyzing the new theory's potential effect on China's economy in the 21st century.

Xie Zhenhua spoke on China's environmental policies during the development of China's western regions.

Some famous scholars like Wang Xuan from the Chinese Academy of Sciences and Hu Angang from Qinghua University made speeches about western development and the publishing industry respectively.

The 21st Century China forum was first held in Washington last year. The Western Returned Scholars Association was the forum's major sponsor.

Established in 1913, the association is regarded as the most important organization joining China and students abroad.

(China Daily )