These are among the key economic objectives for the new year, according to a central conference which ended in Beijing on Thursday.

The three-day annual meeting, held by the Central Committee of the Communist Party of China and the State Council and attended by President Hu Jintao and Premier Wen Jiabao, set guidelines and major tasks for the economy next year.

The meeting agreed that the country's macro-economic policies would continue to aim for fast and stable growth.

Such a growth mode is imperative for increasing national strength and relieving contradictions in economic and social development, said a statement issued after the meeting.

It said the key lies in increasing domestic demand, sticking to prudent fiscal and monetary policies and improving macro-regulation.

The government will continue to rein in excessive investment in such overheated sectors as steel, cement, aluminium and copper.

"The message from the meeting indicates that the highest leadership is determined to make China's economy develop in a sustainable way," said Lin Yueqin, a researcher with the Economic Research Institute of the Chinese Academy of Social Sciences, a task he described as "challenging."

China's economy, which grew at an average of 9.4 per cent during the past 26 years, is expected to expand by 9 per cent this year.

Liu Shijin, vice-president of the Development Research Centre of the State Council, forecast that the pace of the economy would slow down to between 8.5 and 9.0 per cent next year.

Emphasis is also placed on sharpening the competitive edge of domestic enterprises.

The statement said it is urgent to accelerate industrial restructuring by using advanced technology to upgrade traditional industries and eliminate outdated productive forces.

Efforts will be intensified to save resources and protect the environment, the statement said.