By Hu Hongjun and Huang Xin

In the first half of this year, the value-added of China's industries above the designated scale increased by 7 percent year on year, where the heavy industry and the light industry grew 8.2 percent and 6.6 percent respectively, speeding up by 1.4 percentages and 2.1 percentages respectively comparing with that in the first quarter. According to the statistics on a monthly basis, although the growth of industrial value-added tumbled to 3.8 percent in the early two months this year, it picked up to 8.3 percent, 7.3 percent, 8.9 percent and 10.7 percent in the subsequent four months respectively.

On July 22, Zhu Hongren, Chief Engineer with the Ministry of Industry and Information Technology, said that with the overall implementation of packaged programs on expanding domestic demand, keeping increase, adjusting structure and benefiting people's livelihood, the sharp decline trend of China's industrial growth has been restrained, the situation of seeking for stabilization and up reversal has become clear gradually and the integrated operation is going well.

Statistics shows that in the first half of this year, the value-added of China's industries above the designated scale increased by 7 percent year on year, where the heavy industry and the light industry grew 8.2 percent and 6.6 percent respectively, speeding up by 1.4 percentages and 2.1 percentages respectively comparing with that in the first quarter.

According to the statistics on a monthly basis, although the growth of industrial value-added tumbled to 3.8 percent in the early two months this year, it picked up to 8.3 percent, 7.3 percent, 8.9 percent and 10.7 percent in the subsequent four months respectively. In June, the growth of 7 out of 12 main industries accelerated than that of the last month, and more than 2 percentages has been increased in such 4 industries as metallurgy, non-ferrous metal, electron and electrical power; there are 26 provinces expediting their industrial growth faster than that in the last month (or slowing down the decrease) and in such provinces as Shan Dong, Jiang Su, He Nan and Liao Ning, which account for a large proportion of the industrial value-added all over China, the growth keeps on a favorable trend.

The trend of slumped industrial profit has been eased off. In the first five months, the profits realized by the industrial enterprises above the designated scale decreased by 22.9 percent year on year, which is 14.4 percentages less than that in the first two months; there are 26 provinces realizing better industrial profit and loss conditions than that in the first two months.

Raw materials industry and equipment manufacture industry accelerate to recover

Driven by the investments and the support of policies, in the first half of this year, the value-added of raw material industry was up 6.9 percent on a year-on-year basis, and that of equipment manufacture industry (including vehicle and shipping industries) was up 9.2 percent year on year. Especially in June, the increase of the above reached 11 percent and 13 percent respectively.

In the field of raw material industry, the yield of cement was up 14.9 percent on a year on year basis. The daily average yield of crude steel picked up from 1.16 million tons in last October to 1.65 million tons in this June. The daily average yield of alumina, electrolytic aluminium and electrolytic copper was up from 18 percent to 21 percent respectively comparing with the lowest yield in the month of the second half of last year; and the usage rate of equipments for ethane, caustic soda and soda ash recovered to over 80 percent.

In the equipment manufacturing field, the product growth on two thirds of more than 80 types of mechanical products supervised by the Ministry of Industry and Information Technology has been more in the first half of this year than that in the first quarter. Such policies as encouraging the expenditure on autos with small emission volume, "Autos Going to the Countryside" and providing subsidy for purchasing agricultural machinery have shown an obviously effect. In the first half of this year, China's accumulated auto output was 6.23 million sets, 16.4 percent up year on year and the production and sale volume has exceeded 1 million sets for consecutive 4 months, where the number of passenger cars with the emission volume of 1.6L or less increased by 34.9 percent; the yield of large and medium-sized tractor, harvesting machine and machine working on threshing grounds raised by 25.1 percent to 41.8 percent.

The working in consumable industry and electronic manufacturing get improved

Driven by the demand in domestic market, in the first half of this year, the value-added in consumable industry raised by 9.3 percent year on year, where the growth of trades like light industry, textile, tobacco and medicine reached 9.4 percent, 8.2 percent, 7 percent and 14 percent respectively. The growth in agricultural and non-staple food, food and drinking production kept a good tendency and the output of yarn, cloth and garment increased stably. The improvement of export tax rebate rate has supported the export of light textile products, so the decrease of which is distinctly less than the slip level of the overall foreign trade export nationally, where the textile clothing export decreased by 11.1 percent, and that of the footwear, cases and bags, furniture and plastic products decreased by 4.3 percent to 9.8 percent year on year.

In the posture of overall slipping down on industrial profit-gaining, from January to May, profits realized in consumable product industry climbed 4.5 percent, where the growth of trades like light industry, textile, tobacco and medicine reached 3.2 percent, 1 percent, 3.6 percent and 18 percent. In electronic manufacturing industry, the declining trend has been restricted preliminarily, and in May and June, the growth rate reached 4.3 percent and 6.5 percent respectively, the decline in export delivery value reduced from 15.5 percent in the first quarter to 7.1 percent and 5.8 percent. Impacted by the sharp drop in the earlier two months, in the first half of this year, the value-added of electronic manufacturing still declined by 0.6 percent year on year, however, the decline margin shrank 4.7 percentages than that in the first quarter; the yield of entire computer expanded 10.9 percent year on year, the yield of liquid crystal TV set expanded 75.9 percent and the mobile communications base-station equipments increased by 1.94 times driven by 3G construction.

The increase in the communications industry picks up and the software industry grows fast

According the statistics from the Ministry of Industry and Information Technology, in the first half of this year, total amount of the telecommunication service rose 11.8 percent year on year with the income increasing by 2.3 percent. The number of accumulative newly increased telephone users reached 43.52 million and the wide-band users 10.60 million, the total volume of telephone users and wide-band users achieved 1.025 billion and 93.48 million respectively. The 3G construction progressed successfully. By the end of June, three basic telecommunication enterprises had completed an investment in 3G for about RMB80 billion yuan; China Mobile had finished construction on 44 thousand of 3G base stations and Phase III TD construction was being launched, and at the end of this year, the TD will cover 238 cities; China Telecom and China Unicom had finished construction on 146 thousand of 3G base stations and introduced 3G network in 342 cities and 100 cities respectively. With the expanding in industrial services and contracting out in the software industry, the business revenue in the first half of this year increased by 23.2 percent year on year and the export progressed in a large margin.