Meeting Zhejiang governor Lu Zushan

Hangzhou - The economic development in East China's Zhejiang province, one of China's greatest economic powerhouses, must slow down during the next five years to accommodate efforts to clean up industry and protect the environment, according to the governor of the province.

Lu Zushan, head of the most vibrant industrial area in China, took a bold step by setting lower targets for the annual growth of the province's gross domestic product.

He called for an average growth rate of 8 percent during the next five years, which is below the average growth rate of 11.8 percent recorded for the past five years.

"We know clearly that there are many problems in Zhejiang's current economic development, especially the long-standing structural ones that can be largely attributed to our over-dependence on low-end industries and low-cost labor," Lu said in a written interview with China Daily. "Our emphasis should now be shifted to ensuring quality and sustainability in the economy."

He said the province is faced with increasing pressure to conserve energy and reduce emissions of pollution. He said Zhejiang's current economic growth is dependent on the over-consumption of natural resources, which has somewhat stymied the expansion of industry and stifled the spirits of entrepreneurs. That must change, he said.

According to official statistics, Zhejiang has already made progress in conserving energy and reducing emissions. Its growth rate for resource consumption was only 7 percent during the past five years, indicating a 20 percent decrease in the consumption of coal. That brought the province's rate of using coal down to 0.72 tons for every 10,000 yuan ($1,518) of gross domestic product.

Zhejiang has also been proactive in closing manufacturing plants that fail emissions tests. The affected operations have included steel plants and cement mills.

Even so, Lu said the province faces "serious challenges" in the next five years and needs to reduce energy consumption by another 18 percent to meet requirements set by the central government.

Part of the province's economic plans call for taking greater advantage of Zhejiang's oceanic resources, Lu said. He said Zhejiang enjoys an exceptional natural advantage in its coastline, which stretches for almost 6,700 kilometers, a length unequaled by coastlines in other Chinese provinces.

A further sign of the region's recent prosperity is the presence in Zhejiang province of the largest small-commodities market in the world, called Yiwu International Trade City. Emboldened by the success there, local officials have planned to start construction on a similar venture in Thailand on Jan 18.

The project is to cost 10 billion yuan and is to take place in Bangkok at the China City Complex, a commercial and wholesale town similar to China's Yiwu. It will sell Chinese-made goods, including garments, ornaments and household items.

By Qian Yanfeng and Shi Jing