Growth potential underestimated

China's economy still has huge growth potential although its GDP has maintained double-digit growth for four straight years and hit a new high of 10.7 percent last year.

Economist Fan Gang, a member of the Monetary Policy Panel of China's central bank, said that the academic world had started to change traditional views on China's neck-breaking growth.

Fast rising productivity, rather than low costs, is playing an increasing role in spurring growth in the world's fourth largest economy, he noted.

"The Chinese economy had no way to maintain rapid economic growth and simultaneously keep prices at a low level if the country's labor productivity remained still," Fan said at an economic forum on sina.com, an international Internet portal.

Audit finds widespread irregularities

Government auditors have discovered 280 billion yuan in accounting "irregularities" in companies and government departments across the country.

The problems were found after checking the books of more than 137,000 organizations last year, the National Audit Office said on its website, quoting a speech by chief Li Jinhua.

The crackdown allowed the state to save 49 billion yuan through cost reductions and capital reclamation.

The National Audit Office alone checked 425 firms and agencies, uncovering 64.4 billion yuan in irregularities. It sent 149 cases to the police for prosecution, Li said.

"The office will strengthen auditing functions to supervise entities, crack down on economic crimes and prevent losses," he said.