Industrial value-added output grew 11.2 percent to reach 587 billion yuan (US$70.7 billion) during the January-March period on a year-on-year basis, the report said.

The average growth rate throughout the year 2000 was 9.9 percent.

The bureau said the figures for the first quarter are especially encouraging because they show the rate climbing month by month from January to March.

According to reports released by the bureau earlier this year, the growth rate stood at a combined 10.2 percent in January and February and 12.1 percent in March.

But the trend isn't likely to keep going throughout the year, according to Zhu Jianfang, a senior analyst at China Securities.

"The growth rate will be more stable compared to last year,'' he said.

Traditionally, industrial growth rates between 9 percent and 12 percent are capable of supporting economic growth of 7 percent, the official goal for 2001.

As has been the case for the past three years, the major force driving the industrial growth this year has been the government's pump-priming measures, which include infrastructure construction, Zhu said.

There has been additional stimulus this year in the form of new projects that are expected to be launched as part of the 10th Five-Year Plan (2001-05).

"It is kind of a new investment cycle. Some additional projects will be launched at the start of the cycle,'' Zhu explained.

The projects have generated intense demand for heavy industrial products.

Since the end of 1998, heavy industries have maintained faster growth than their lighter counterparts.

During the first quarter of this year, heavy industries grew 13.4 percent, while the light industries grew 8.6 percent.

The report said companies belonging to six categories accounted for 54 per cent of the first quarter's industrial output. The six categories are: metallurgical, transportation equipment, electrics and mechanics, electronics and telecommunications, chemicals and textiles.

The industrial growth rate is the first major figure China has released at the end of the first quarter.

Other major indicators, including the gross domestic product, are expected to be released in the next two weeks.

(China Daily 04/11/2001)