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China planned to cut its water consumption for per unit GDP growth by 20 percent by the end of 2010, or an annual drop of four percent during the 2006-2010 period, according to the Ministry of Water Resources.

According to the target, a total of 69 billion cubic meters of water will be saved in the five-year period through reduction of per unit GDP water consumption.

Statistics from the ministry show that China's per 10,000 yuan GDP water consumption was 399 cubic meters in 2004, about four times the world average and eight times that of the United States and other developed countries.

China's water consumption for per 10,000 yuan industrial added value was 196 cubic meters in 2004, compared with less than 50 cubic meters in developed countries.

China only had 60 percent to 65 percent of its industrial water recycled, compared with 80 percent to 85 percent in developed countries.

"There is huge potential for water saving in China," said Wang Shucheng, minister of water resources.

According to plan, China will establish 100 pilot projects in water saving in the 2006-2010 period and successful experiences drawn from the pilot projects will be popularized across the country.

China will also control the gross amount of water consumption and sets water consumption quotas to reach the goal of water saving.

Localities will be required to establish their mechanism to manage use of water.

Currently, China's per capita water resources is about 2,200 cubic meters, or one-fourth of the world's average.