China should consider adjusting its growth mode, now an extensive type featuring high input and low yield, in formulating its 11th five-year plan (2006-2010) and long-range objectives, a political advisor said Monday.

"The current mode of economic growth and industrialization, which is at the cost of high input, high energy consumption and high capital accumulation, has produced severe negative impacts on the drive to achieve sustainable and steady national economic growth," said Wu Jinglian, a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC).

"It also triggers a series of economic and social problems," said Wu, who is also a well-known economist, while addressing the second plenary meeting of the annual CPPCC National Committee session.

Wu said under this mode, the rise in output value does not bring much benefit to the broad masses of people.

He mentioned some of the erroneous investment decisions made by local governments.

"Certain areas with advantages in new and high-tech industries and service industry have chosen to shift to heavy industries. Some water-hunger areas have made metallurgical and chemical industries, which consume large amounts of water, pillars of local economies," said Wu.

"The unilateral pursuit of heavy industries and high output value have resulted in serious shortage of resources, deteriorating environment and tense employment situation," Wu said.” The potential risks are great."

He said to improve the situation, the old mentality should be changed and energy conservation, enhancing efficiency, realizing sustainable and steady growth should be made the "starting point" of economic work.

He also suggested vigorously advancing scientific and technological progress, service industry and application of information technology, and reducing the government role in allocating resources.

(Xinhua News Agency March 8, 2005)