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China to maintain stable industrial growth

Updated: 2012-02-07 16:26

(Xinhua)

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BEIJING - The growth rate of China's industrial value-added output will slow to 11 percent this year from 13.9 percent in 2011, forecast Zhu Hongren, chief engineer of China's Ministry of Industry and Information Technology (MIIT), on Tuesday.

Zhu said although industrial growth would ease in 2012, it would still continue to increase at a stable and relatively fast pace.

China witnessed gradual decreases in industrial growth last year. The industrial value-added output expanded 14.4 percent in the first quarter in 2011, and grew by 14 percent, 13.8 percent, and 12.8 percent in the other three quarters, respectively, government data showed.

The European debt crisis has helped stoke concerns of weakening industrial growth in the world's second largest economy.

"The industrial growth may further trim down in the first quarter this year," Zhu said at a press conference held in Beijing, citing weak external demand amid the debt morass in Europe and a slowing global economy.

He also said production costs at home continue to rise. "Small and micro-sized firms, in particular, face greater difficulties. Meanwhile, energy, resources, and the environment are all increasingly constraining industrial development," He said.

However, Zhu said he remained confident because the fundamentals of the Chinese economy had not changed, ensuring long-term and medium-term growth.

The country's industrial growth stood at 13.2 percent in October, 12.4 percent in November, and 12.8 percent in December last year. This suggested that the industrial growth was stabilizing, according to Zhu.

Further, he said by maintaining stable investment growth, the industrial economy can expect fast growth that will be pushed up by the government's efforts to expand domestic demand.

"The moderate decline in industrial growth also will drive companies to speed up restructuring and upgrading so as to improve cost-effectiveness," Zhu said.

As an important channel of creating jobs, the government has vowed to provide more support to small and micro-sized companies in 2012.

Zhu said the central government will roll out more policies tailored for boosting the healthy development of small and micro-sized firms this year.

The central government last week earmarked 15 billion yuan ($2.38 billion) to establish a development fund for small and medium-sized enterprises, particularly focusing on newly-formed ones.

Zhu said relevant ministries of finance and industry are currently finalizing details of the operation of the 15-billion-yuan fund created to support small businesses that face difficulties in loans and rising costs.

The State Council, the country's cabinet, said further support for small and micro enterprises are crucial as they are still facing great operating pressures, rising costs and financing difficulties.

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