China Industrial Output Rises 17.2% in First Quarter

Total industrial output amounted to 834.3 billion yuan (US$100.5 billion) during the period, a year-on-year increase of 17.2 per cent.

The growth rate was 6.3 percentage points higher than the same period last year, the bureau said in a statement.

In March, the industrial output rose a year-on-year 16.9 per cent to 313.4 billion yuan (US$37.8 billion), it said.

Six major industries including telecommunications, computers, electronics and transportation equipment led the fast rise in industrial output, the bureau said.

During the January-March period, output of electronics equipment and telecommunication products such as computers and mobile telephones rose more than 40 per cent compared with a year earlier.

Car production rose a year-on-year 120 per cent to 399,000, while output of all types of vehicles rose 54 per cent to 1.05 million, the bureau said.

The six major industries contributed 9.4 percentage points to the country's overall industrial growth, it said.

During the period, exports handled by the industrial sector reached 514.6 billion yuan (US$62 billion), a year-on-year increase of 30.2 per cent.

Industrial output is an important indicator of China's economic development as it contributes about 60 per cent to gross domestic product.

Zhang Xueying, a senior economist with the State Information Centre, said this year, the domestic investment and consumption as well as exports will continue to have a great impact on the country's industrial sector and the economy as a whole. "The country will continue to witness strong fixed assets investment this year," he said. "This will benefit heavy industries, which are expected to sell more products such as steel and cement." More foreign investment is also expected to flow into China due to the country's accession to the World Trade Organization, the country's stable economic growth and sound social order.