MercoPress. South Atlantic News Agency

China's economy energy consumption is “unsustainable”

China in 2006 consumed 15% of the world's energy to produce 5% of the global GDP, a situation described as “unsustainable” by Deputy Prime Minister Zeng Peiyan in an interview with “China's daily”.

"It's essential to accelerate the growth model change to achieve a sustainable development" said Zeng Peiyan on talking about the "serious environmental and resources restrictions, the irrational industrial structure and the growing gap between city and rural development" in China. The current Chinese development model is based on high energy and resources consumption and if changes are not introduced, "the world's fourth economy could begin to tumble" added the high Beijing official. Zeng Peiyan promised the introduction of more reforms to current price mechanisms and tax incentives as well as a special effort in energy saving polices and environment protection and conservation. The Deputy Prime Minister participated over the weekend in a new development forum together with the National Reform and Development Committee (China's Planning Office) minister Ma Kai. "The average growth of the Chinese economy is inspiring but one of our major concerns is that we have been paying too high a price as far as the environment and resources needed to materialize such an achievement", said Ma Kai. The Chinese economy expanded 10.7% in 2006 and so did companies' benefits and equities with a low inflation. However the efficient use of energy is a serious problem in one of the most contaminated countries in the world. China's GDP reached 2.16 trillion US dollars last year which is equivalent to 5.5% of the global GDP but China's energy consumption was 15% of the world's total, with even higher percentages in steel (30%) and cement (54%) two of the most contaminating industrial sectors and highest energy consumers.