More important, domestic consumption is picking up as retail sales accelerated to their fastest pace in a decade in October.

All these economic indicators seemingly point to rosy growth prospects.

However, with a firm grasp of not just the country's economic reality, the central authorities have focused on the underlying challenges the country faces when mapping out major economic plans and policies for 2007.

At present, a fundamental change in the country's growth pattern is yet to take place. And the environmental and social costs for economic growth remain high.

To pursue sustainable growth in the long run, the country must step up efforts to re-engineer the economy away from its reliance on investment and exports.

To realize the country's goal to reduce energy intensity by 20 per cent and cut major pollutants like sulphur dioxide emissions by 10 per cent during the 11th Five-Year Plan period, efforts to boost energy saving and environmental protection are necessary.

To sharpen the economy's competitiveness in the era of globalization, the country has no choice but to further bolster independent innovation across all sectors.

Besides, to enable more people to share the benefits of economic growth, the country also needs to substantially increase its expenditure on social security.

China's "sound and steady" economic growth will definitely hinge on its ability to, in the spirit of scientific development, embrace a new growth pattern that is energy-saving, environmentally friendly and sustainable.

Now the Central Economic Work Conference has sounded the clarion call to march in that direction.

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