The central government's plan to set a higher economic growth target this year indicates China has become practical in its economic planning, economists said.

The National Development and Planning Commission said last month the government is to raise this year's growth target from 7 percent to 8 percent.

Economist Lu Zhongyuan said the adjustment in the growth target suggests the government has become practical in its economic planning.

"The country's economy is capable of maintaining a growth rate of 8 to 9 percent this year and next year," said Lu of the State Council Development Research Center.

Tang Min, chief economist of the Asian Development Bank resident mission in China, said an 8 percent growth target for this year was realistic.

Otherwise, the growth rate would be underestimated, he said.

The country's gross domestic product has grown at an average annual rate of more than 9 percent during the past 25 years, he said.

Now the government is giving key attention to macro control, hoping the economy will grow at a slower rate.

"If the government can effectively prevent the economy from becoming overheated, the Chinese economy can grow at 8 percent to 9 percent in the medium and long term," he said.

Zhang Xueying, a senior economist with the State Information Center, said the adjustment in the growth target did not mean the government had altered its judgment for future economic development.

"It is the planning itself which is changed," he said.

Deputies to the National People's Congress have long challenged the country's growth target, which stood at 7 percent during recent years.

Real gross domestic product rose a year-on-year 9.1 percent in 2003 and 9.5 percent during the first three quarters last year.

China's potential economic growth has been speeded up during recent years, due to the progress made in science, Zhang said.

The government needs to set a suitable rate for future development, he said.

"Both a higher rate and a lower rate would be harmful to the country's sustainable economic development," he said.

A faster rate would result in a strain on energy and resources, which would lead to chaos in future economic development, he said.

On the other hand, a slower rate would result in slow growth in farmers' income and insufficient employment.

Zhang said the 8 percent rate for this year has nothing to do with the country's 11th Five-Year Plan (2006-10).

The government still needs to further observe this year's economic performance, before it mapped out a plan for the next five years.

"It is too early to say the Chinese economy has achieved a soft landing," he said.

(China Daily January 10, 2005)