Wu Jichuan, minister of the information industry, told the All-China Information Industry Working Conference in Beijing yesterday that the industry should achieve added value of 632 billion yuan (US$76 billion) this year.

The sales volume from the telecommunications sector this year will be 506.7 billion yuan (US$61.2 billion), up 11 percent over last year, said Wu.

The target for new fixed-line telephone subscribers is 33 million people, while that for mobile phones is 52 million.

The sales volume of electronic manufactured goods is expected to hit 1.64 trillion yuan (US$198 billion), up 19 percent over last year.

"Exposed to predictions of a prolonged period of sluggish growth worldwide, this year is of vital importance for us," Wu said.

The telecommunications industry should be further restructured to enhance its competitiveness, he said.

Last year, the telecommunications industry's sales volume stood at 457.6 billion yuan (US$55.3 billion), up 14 percent from the previous year.

"The unabated domestic demand as well as reforms within the industry contributed a lot to the growth," said the minister.

"Competition should be increased and monopolies are not acceptable," Wu said.

In another development, the minister said the manufacturing of electronic goods should be readjusted more quickly while both domestic and overseas markets should be explored.

The sector last year harvested a sales volume of 1.4 trillion yuan (US$169 billion), up 20 percent from the previous year.

"We will continue to encourage more home-grown transnational companies and more flagship products," he said.

Last year, there were 11 electronic information industry enterprises whose sales surpassed 10 billion yuan (US$1.2 billion) each.

Reorganization, mergers and acquisitions and public flotation are encouraged so that companies grow bigger and more competitive, he said.

The manufacture of electronic goods has become China's top industry in terms of foreign investment and exports.

The sector has so far attracted more than US$70 billion in foreign investment.

Exports were worth US$92.5 billion last year, representing an annual growth of 42 per cent.

According to this year's target, China will produce 13 million computers, 120 million mobile phones, 50 million color monitors and 10 billion integrated circuits.

The ministry also pledged yesterday to speed up the construction of a supervisory system for telecommunications.

"The optimization of telecom regulations has become the most crucial issue in the industry," said Wu. "We will accelerate the drafting of telecommunication laws, the revision of postal laws and the wireless management regulation," he said.

(China Daily January 21, 2003)