Ministry Of Industry And Commerce: Industrial Added Value Increased 20% In The First Two Months.

Zhu Hong, chief engineer and spokesman of the Ministry of industry and information technology, said yesterday that there are still some places still keen to shop and project.

The Ministry of industry and Commerce issued the "spring economic report of China's industrial economy" in Beijing on the same day. When it talked about the main target of industrial development this year, it reiterated that the industrial added value of above scale increased by 11% or so over the same period of 2010.

It is worth noting that the industrial added value increased by 20.7% in the first two months of this year.

In this report, the Ministry of industry and Commerce forecast that the trend of industrial growth this year will show heavy industry growth slowed down compared with 2009, while the light industry represented by consumer goods and electronics manufacturing will accelerate growth.

The spring report has made a judgement on the operation and development trend of the four main industrial industries, such as raw material industry, equipment industry, consumer goods industry and electronics manufacturing industry.

In 2009, the growth rate of raw material industry, which accounted for about 32% of the industrial added value above scale, was 12%. In accordance with the Ministry of industry and information technology forecast, the growth rate will drop sharply in 2010.

In fact, this year 1~2 month, due to the lower base last year (growth rate of 3.1%), made the raw material industry growth in the first two months to more than 20%, but the Ministry of industry and Commerce believes that with the decline of investment growth, the growth rate of raw material industry will slow down in 2010, and the overcapacity and backward production capacity will exit in time, which will affect the development of raw material industry.

Similar to the raw material industry, the equipment manufacturing industry, which accounted for 19% of the industrial value added above the scale, increased by 13.8% last year. The Ministry of industry and industry expects that the growth rate of the equipment manufacturing industry will drop to about 13% this year.

Light industry may show a trend of "going against the other" with heavy industry.

The consumer goods industry represented by the textile industry and light industry increased by 10.8% last year, and this year it is expected to increase to around 11%.

However, even if the growth rate of consumer goods industry returned to 11%, it did not return to the level of 2008 (13.5%).

The growth rate of consumer goods industry has reached 15.9% in 1~2 months this year, but the Ministry of industry and Commerce believes that whether the consumer goods industry can achieve steady and rapid growth depends largely on whether exports can rise to a better level.

Zhu Hongren said that although the economic operation has entered a fast recovery channel, the foundation for growth is still not strong enough.

From a macro perspective, the current economic recovery mainly depends on the support of investment and policy support, the willingness of private investment is not strong, local financing is difficult, the income of urban and rural residents can not be greatly improved in the short term, and the policy effect of stimulating domestic consumption and investment growth may be weakened.

Zhu Hongren said that although the scale of industry is growing, there are serious problems of redundant construction and overcapacity in some industries. By the end of 2009, the production capacity of some important industrial products in China has reached a very high level.

The share of some important industrial products in the world market has reached 30%~50% level.

Some products are unsalable, prices down, inventory increase, overcapacity has been reflected in some aspects, but there are still some places still keen to shop and project, which should be highly valued in these areas.

Article 38 of the State Council has put forward important guiding suggestions for stopping the blind expansion of the capacity of some industries, inhibiting the rapid growth of overcapacity and promoting the healthy development of the industry.

Referring to this year's target of adjusting the value of industrial added value by 11%, the Ministry of industry and information technology indicated that this is a suitable and matching target for this year's GDP determination of 8%.