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China will focus on precise legal and economic measures to maintain control over yawning fixed assets investment and lending, according to a press release from the Communist Party leadership on Thursday.

At a conference relating to the central government's work report, the Political Bureau of the CPC Central Committee decided that state authorities should use stronger macro-economic measures to regulate economic activities.

"This year is of critical importance for the development of the Party and the state," the press release said. "Thus, the government should stick to prudent fiscal and monetary policies to maintain economic stability."

The conference, chaired by Chinese President Hu Jintao, determined that specific macro-economic measures should be the main tactic employed in reining in fixed assets investment and the scale of bank loans.

The release added that both central and local governments should head towards the same goal, with centrally-determined policies being implemented nationwide, it said.

Despite the government's cooling measures, China's gross domestic product (GDP) rocketed by 10.7 percent year-on-year to reach 20.94 trillion yuan (US$2.7 trillion) last year. This marked the fourth straight annual double-digit growth rate, caused by runaway investment and blossomed trade, both of which saw a 24 percent year-on-year growth.

Even in double-digit terms, the economy continues to soar, posting at 10 percent in 2003, 10.1 percent in 2004, and 10.4 percent in 2005.

(Xinhua News Agency February 16, 2007)