China is still plagued by excessive growth in investments and bank loans, as well as unbalanced international trade, according to Ma Kai, the Minister in charge of the National Development and Reform Commission.
Mai Kai said these are the key problems the country faces in his report to the 23rd meeting of the 10th Standing Committee of the National People's Congress.
He attributed the excessive growth to unfinished economic transformation from extensive to intensive economy.
 “The increase in investment growth shows that the economy has not been completely transformed yet. Some local governments are still pursuing blind economic growth and are over-dependent on investment.”
Capital investment grew by almost a third across China's cities in the first seven months of 2006, around 4 percentage points higher than the same period last year.
At the same time, 115,000 different projects were launched, 20,000 more than the same period last year, up 18.4 percent.
Ma Kai says China will continue to curb excessive growth in investment by controlling land and credit distribution, and restricting the threshold of industries with high energy consumption levels.
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Director: Liu Chi