China lacks more than 30 billion cubic meters of water every year, which causes 230 billion yuan (US$28 billion) of losses in industrial output, said Vice Minister Zhai Haohui of Water Resources in Xi'an Thursday.

Zhai said at a national working conference on water prices that drought and water shortage have severely limited China's balanced and sustainable economic and social development.

Now over 400 cities and 20 million people in China face the problem of water shortage, and the per capita fresh water possession in the country is only 2,200 cubic meters, ranking No. 121 in the world, official statistics showed.

Although China badly needs water, pollution and waste of water can be widely seen in many places, Zhai said.

(Xinhua News Agency December 12, 2003)