China's industrial output grew by 10.2 percent during the first two months of the year compared to the same period last year according to the National Bureau of Statistics (NBS).
Industrial value-added output for January and February came to 363 billion yuan (US$ 43.7 billion), the bureau said in its monthly report on Chinese industries.
The growth rate is slightly higher than that for the whole of last year. That figure was 9.9 percent.
Growth in January alone was 9.9 percent.
Growth in the industrial sector is good news for the economy as this could boost general economic growth.
Chinese Premier Zhu Rongji said earlier this week that the country is aiming for 7 percent economic growth this year.
Economists, however, have said they believe the rate could be between 7.5 percent and 8 percent.
The Chinese economy grew by 8 percent last year.
Economists said domestic forces that drive the industrial sector and the economy as a whole this year are not expected to change much.
Government-sponsored infrastructure construction schemes were the centerpiece of China's economic policy last year.
Premier Zhu has also announced the size of China's treasury bond issue to fund this year's stimulus package. It will remain at last year's level of 150 billion yuan (US$ 18 billion).
The direct beneficiaries of new infrastructure projects are heavy industries, which sell more goods such as steel and cement.
This can be reflected by statistics released by the NBS.
The heavy industrial sector grew by 12.3 percent during the first two months of this year; light industries increased their output by 7.6 percent.
However, light industrial growth is not expected to be slower this year than last year, as surveys have showed growing consumer confidence, government officials and economists have said.
The only factor that may affect industrial growth negatively this year is foreign markets.
As both the US and Japanese economies are showing signs of slowdown, the growth in industrial exports may be slower, experts have said.
China's industrial exports grew by 11.7 percent to 200 billion yuan (US$ 24 billion) during the first two months of the year, according to NBS.
The growth rate compares to 24.6 percent for the whole of 2000.
(China Daily 03/10/2001)
