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By Tu Lei (chinadaily.com.cn)
Updated: 2007-07-13 13:54

The annual growth rate of the machinery industry is expected to remain high at more than 20 percent for the consecutive years from 2003 to 2007, according to a report from today's China News Service.

The industrial output, industrial added value, main business income, total profits and exports are expected to maintain high growth rates of 25 percent, said the news.

Statistics from the China Machinery Industry Federation show that the machinery industry has an added value of 731.4 billion yuan (US$96.61 billion) in the first five months of this year, up 33.8 percent year on year.

During the period, the gross industrial output reached 2.660 billion yuan, up about 31.8 percent year on year, contributing 20.8 percent to the newly added total.

In the first five months of this year, the 13 sectors in the machinery industry saw an average growth rate of more than ten percent, with 31.2 percent in the automobile sector and 34.2 percent in electrical engineering.

The automobile and electrical engineering sectors account for 57.3 percent of the machinery industry, and contribute 58.4 percent to the industry's newly added industrial output.

The China Machinery Industry Federation said the development of the machinery industry is going smoothly this year, with industrial upgrades resulted from energy-saving policies and more construction on infrastructure facilities.

Meanwhile, the export tax rebate cut, a move intended to rein in exports of labor-intensive products, will adjust exports structure, especially for automobiles and machinery equipment, it said.