BEIJING, March 23 (Xinhua) -- China's National Development and Reform Commission has reiterated the need to adjust industrial sectors with overcapacity in order to promote sound and sustainable development of the economy.

    A circular, released on Thursday, highlights five major aims of the adjustment, including control of fixed assets investment, improving regulations for market entry, mergers and acquisitions, and technology innovation. It also underlines the role of the market in resource distribution.

    Since 2003, China's economic growth has relied, in part, on the launch of new projects, which have mostly involved high resource consumption and heavy pollution. The negative effects of these projects on China's economy started to emerge in 2005.

    The circular warned that the conflict between rapid growth and limited resources will become more evident if the trend continues.

    It is crucial to take measures to curb the extensive development of these sectors to attain sound economic growth, said the circular. Enditem