China targets production growth at 11%
By Wang Yanlin |
March 13, 2010, Saturday
|
Print Edition
Print Edition
CHINA is targeting 11 percent growth in industrial production this year, and much of that should come from less energy-consuming and higher-tech sectors, said Li Yizhong, head of the Ministry of Industry and Information Technology.
He also urged the policy makers to notice that producer prices are rising -- a threat to a steady growth in China's manufacturing.
"To meet the goal of an 8-percent increase in gross domestic product, China's industrial production has to expand more than 11 percent this year," Li said yesterday.
He spoke on the sidelines of the annual session of the National People's Congress, the country's top legislature.
"China's manufacturing has delivered a good performance at the start of this year, but it is mainly due to a low comparative base last year," Li added. "And we should be aware that the growth is still driven by more energy-consuming heavy industries."
Jump in output
China's industrial output jumped 20.7 percent on an annual basis in the first two months, higher than a general market forecast of 19.5 percent and notably more than December's increase of 18.5 percent.
The growth was powered by heavy industries, whose output climbed 23.7 percent. Production in light industries, such as manufacturing of consumer goods that uses less energy, grew only 14.5 percent, Li said.
The pickup in industrial production has triggered wide concern of overheating in China's economy.
Li, however, said the recent figures need to be seen against the very low comparative base last year. Excluding the effect of that low base, the annualized growth would be much slower and if put on a monthly basis, the increase might be within 1 percent from December, according to Li.
PPI threat
In the January-February period of last year, China's industrial output grew just 3.8 percent from a year earlier, when the global financial crisis was hitting.
"The growth rate will turn to normal in the following months when the carry-out effects fade," Li said.
A real threat is the surge in producer prices, which adds a lot to manufacturers' costs, Li said.
The Producer Price Index, a main gauge of factory-gate inflation, climbed 5.4 percent from a year earlier in February.
The price of fuel and raw materials even surged 9.1 percent, compared with a contraction at the end of last year.
Li said it was important to enforce supportive measures for small and medium-sized enterprises, and stressed their role in providing jobs, paying taxes and propelling structural reform in China's economy.
He also urged the policy makers to notice that producer prices are rising -- a threat to a steady growth in China's manufacturing.
"To meet the goal of an 8-percent increase in gross domestic product, China's industrial production has to expand more than 11 percent this year," Li said yesterday.
He spoke on the sidelines of the annual session of the National People's Congress, the country's top legislature.
"China's manufacturing has delivered a good performance at the start of this year, but it is mainly due to a low comparative base last year," Li added. "And we should be aware that the growth is still driven by more energy-consuming heavy industries."
Jump in output
China's industrial output jumped 20.7 percent on an annual basis in the first two months, higher than a general market forecast of 19.5 percent and notably more than December's increase of 18.5 percent.
The growth was powered by heavy industries, whose output climbed 23.7 percent. Production in light industries, such as manufacturing of consumer goods that uses less energy, grew only 14.5 percent, Li said.
The pickup in industrial production has triggered wide concern of overheating in China's economy.
Li, however, said the recent figures need to be seen against the very low comparative base last year. Excluding the effect of that low base, the annualized growth would be much slower and if put on a monthly basis, the increase might be within 1 percent from December, according to Li.
PPI threat
In the January-February period of last year, China's industrial output grew just 3.8 percent from a year earlier, when the global financial crisis was hitting.
"The growth rate will turn to normal in the following months when the carry-out effects fade," Li said.
A real threat is the surge in producer prices, which adds a lot to manufacturers' costs, Li said.
The Producer Price Index, a main gauge of factory-gate inflation, climbed 5.4 percent from a year earlier in February.
The price of fuel and raw materials even surged 9.1 percent, compared with a contraction at the end of last year.
Li said it was important to enforce supportive measures for small and medium-sized enterprises, and stressed their role in providing jobs, paying taxes and propelling structural reform in China's economy.
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