The Chinese government on Friday moved to avert a possible overheating economy by tightening controls on fixed asset investments and money supply.

The State Council made the decision at an executive meeting chaired by Premier Wen Jiabao, where it pledged to tackle other problems giving priority to grain production and raising farmers' incomes.

The government made the decision after concluding that fixed asset investments and money supply grew excessively in the first quarter, while its foreign trade sector is still troubled by structural problems.

It decided to strengthen regulation of economic performance by adjusting and upgrading redundant production capacity, curbing new production capacity, improving efficiency of energy and raw material consumption and coordinating demand and supply of energy and raw materials.

The government is also to establish a mechanism to calculate, examine and disclose progress by local governments in raising energy efficiency and reducing discharges of pollutants and protecting farmland.

The National Bureau of Statistics was ordered to publish in July information on a regional and industrial sector breakdown of per-unit energy consumption, said a statement issued by the government.

The government pledged to continue its efforts to curb exports of energy-intensive, highly-polluting products and low-processed resources, and encourage imports of advanced technologies, key equipment and resources.

China will step up reforms in rural areas, state-owned enterprises, financial and tax systems, while encouraging job creation and the development of welfare systems, said the statement.

Source: Xinhua