China's top policymakers say Wednesday that the country must "strictly control" growth of investment on fixed assets in the iron and steel industry to avoid excessive expansion of the sector.

Participants of Wednesday's executive meeting of the State Council, China's cabinet, said investment on fixed assets in the industry had already been "rather great" at the moment.

The meeting, chaired by Premier Wen Jiabao, deliberated and passed in principle China's iron and steel industry development policy.

The meeting said industrial structure of the iron and steel industry must be further adjusted to ensure healthy development of the industry. Manufacture of products that consume a very large amount of energy and materials and cause heavy pollution must be controlled, while export of such products must also be strictly controlled.

The meeting called for an accelerated shift of growth mode in this sector, better efficiency in the utilization of energy and resources, and a "proper and economical" use of the steel products.

The meeting also underlined the importance of promoting the consolidation of the country's iron and steel industry, optimizing its geographical distribution, and building a solid resource supply system that taps both domestic and overseas resources.

Although it has contributed greatly to China's economic growth, China's rapidly-expanding iron and steel industry has also gravely strained electricity supply and the country's transport system, caused serious pollution and intensified international competition for iron ores.