China sees most industries maintaining fast, steady growth in 2001

HONG KONG (AFX-ASIA) - Most industries in China will keep an upbeat growth momentum this year, with an expected output and profit on par with or surpassing last year's level, the official Xinhua news agency said in a despatch from Beijing, citing a report released by the Development and Research Center under the State Council. The electronic and telecommunications equipment manufacturing industry, the postal and telecommunications industry are expected to grow rapidly, while textiles, machinery, tourism, home appliances and building materials will grow at a moderate pace, the annual report said. However, the metallurgical sector, which saw a U-turn change in profit earning, will probably slow down this year, and it will be rather difficult for the debt-ridden coal sector to erase its loss-making record in the short run, the report said. Based on the analysis of domestic and international market trends, economists with the center predict that GDP growth rate will be around 7.5 pct, slightly lower than or about the same as that of last year. The medical industry is expected to grow steadily as demand for medical care remain one of the major forces behind economic growth. The industry's gross industrial value is likely to grow by 15 pct annually and the value-added industrial value by 13 pct, the report said. The petrochemical industry, affected by fluctuating prices on the global market as well as challenges brought by China's expected entry into the World Trade Organization, will grow at a slower speed this year. Domestic demand for refined oil is estimated at 120 mln tons while that of crude oil at 163 mln tons, the report said. The automobile industry, supported by policies to encourage individual purchase of cars and anti-smuggling efforts, is expected to grow at 12.5 pct on a year-on-year basis, with the market demand standing at an estimated 2.33 mln for all kinds of vehicles, according to the report. The electronics industry is expected to grow by 25 pct to realize an output value of 1.3 trln yuan, the report said. The power industry will continue a steady growth of 6-7 pct, the report said. The iron and steel industry will face a severe situation as seen in the first two months, it said. There was a sharp increase in steel output towards the end of last year and imports of steel products increased as well. Moreover, market demand for steel products became rather weak earlier this year, posing a severe threat to the efforts in improving efficiency, the report noted. Whether the sector can perform better or not depends on its control of steel output, the report said.

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