China will go all out to create over 8 million jobs for urban workers and achieve a 7 per cent economic growth in 2003, according to Zeng Peiyan, the nation's leading economic planner.

In a speech delivered to the deputies to the National People's Congress, the top legislature in China, Zeng, who heads the State Development Planning Commission, yesterday said the government plans to limit the registered urban unemployment rate to 4.5 per cent.

Despite the grim outlook for employment and reemployment, Zeng said: "We will spare no efforts to reach the projected targets for creating new job opportunities in cities and towns."

"We will continue to ensure the success of the trial programme to improve the urban social security system," he added.

Zeng revealed the nation's economic targets for the year.

China is aiming for a consumer price index rise of 1 per cent, a foreign trade volume increase of 7 per cent and a fixed-asset investment growth of 12 per cent.

Last year, despite a slowing global economy, China achieved a stellar 8 per cent growth in gross domestic product (GDP) and successfully realized its main financial targets, Zeng said.

But obstacles may still lay ahead this year, given the uncertain world economy.

"We are also aware that there are still many conflicts and problems in our economic and social activities and that some of these are very serious," Zeng said.

Zeng said the country "will continue to expand domestic demand, implement a proactive fiscal policy and a prudent monetary policy" to attain this year's growth target, promote sustainable development and work towards a well-off society.

Zeng urged the nation to optimize its investment structure and allow non-State assets more access to investment.

Zeng said the country will "do everything possible" to increase rural incomes and close the gap in living standards between city and country dwellers.

The minister said that because the main factors behind rural poverty still exist, rural income growth has been slow.

But he expected per capita net income for farmers would rise by 4 per cent in 2003.

"Reform of the grain and cotton distribution systems will be deepened to protect the interests of farmers."

China prospered during its first year of membership to the World Trade Organization in 2002 and the "going global" strategy was successfully implemented by industries well integrated with the world economy.

Zeng said the country will continue opening up and make good use of both global and domestic markets.

He also encouraged more home-grown companies to engage in foreign trade and diversify export markets.

On development in western regions, Zeng said the country will redouble efforts to develop key infrastructure such as the Qinghai-Tibet Railway and west-east gas pipeline while improving local environments.

Zeng said the government will aim to construct asphalt roads in every county and improve the supply of potable water and energy to rural households in western regions.

The minister also said the country will further implement market-oriented reform and develop a more rational market economy.

"We will promptly establish systems for corporate and individual credit information to develop an honest, credible and lawful market environment as soon as possible," said Zeng.