June 18, 2006	Sunday	Jumadi-ul-Awwal 21, 1427

BEIJING, June 17: China has called on local authorities around the country to control new projects, newspapers reported on Saturday, as the government tries to restrain breakneck growth.

Before embarking on new projects, local governments should ensure they are in line with regulations on land use, industrial policies and environmental protection, said a notice issued jointly by the National Development and Reform Commission, China's banking regulator and the Land and Resources Ministry.

“All those projects not in conformity ... must stop construction immediately,” said the notice, seen on the China Securities website.

China has been trying to fend off overheating in its economy and curb a destabilising credit boom.

On Friday, the central bank imposed new limits on the amount of money commercial banks can lend, days after China's cabinet called for moves to cool the economy, listing excessive growth in fixed asset investment and runaway credit growth as its main problems.

The notice said new projects should particularly regulate the use of raw materials including iron and steel, cement and coal.—Reuters