"The market economy has taken root," Zeng proclaimed at the World Economic Forum, after Beijing reported gross domestic product (GDP) of 2.3 trillion dollars, overtaking the economies of Britain and France to take fourth place in the world.

Zeng, who is due to present the Chinese government's next five-year economic plan in March, told the meeting of business and political leaders in the Swiss resort of Davos that China must seize "a window of important opportunities" in the next few years.

"Our goals for the next five years are first, doubling per capita GDP... by 2010 on the basis of an optimised economic structure and higher economic returns," he said through an interpreter.

However, the vice premier cautioned that current per capita income of 1,600 dollars left China in 100th place worldwide, while social and geographic imbalances blighted economic development.

"In a vast country of over a billion people it will take years or even decades of hard work to achieve even moderate prosperity and basic modernisation," Zeng said.

China's second priority would be to harness more efficient and sustainable use of resources, including raising the use of renewable energy to 15 percent by 2020, energy saving measures and an anti-pollution drive, he added.

Economic planning would also focus on a shift from an export-led economy towards generating internal demand.

"Development will be based on the domestic market. China's huge potential in domestic demand will provide an enormous market," Zeng said.

China has an estimated workforce of 800 million people.

Zeng also signalled huge shifts in the structure of China's economy, building up undeveloped regions, prioritising industrial development, modernising agriculture and shifting unemployed rural workforces to urban areas.

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