BEIJING - Chinese Vice-Premier Zhang Gaoli said on Sunday that restructuring and upgrading the economy is key in building China into a powerhouse and avoiding the "middle income trap."

Zhang said that effective use of the economic structure, innovation and science and technology-based development, as well as frugality in resource use and environmental protection should be integrated to further upgrade China.

Zhang, also a member of the Standing Committee of the Political Bureau of Communist Party of China Central Committee, made the remarks at a symposium with ministers and provincial leaders in Beijing.

The "middle income trap" refers to the risk of growth stagnates in an economy that fails to bring out its full growth potential after its development reaches the middle-income levels.

Irrational industrial structure, imbalanced development between cities and rural areas as well as among different regions are currently three major problems that should be addressed through various approaches, the vice premier said.

Zhang demanded government officials attending the symposium improve plans on outdated production capacity elimination, and stick to policies to promote the resources efficiency and protect the environment.

He pressed ministers and provincial leaders to focus more on consumption, optimize investment structure and apply innovation-driven development strategies to support economic restructuring.