Top economic planner forecast 20 percent growth for China's electronics industry
30/3/2007 16:35
China's electronics production will likely grow 20 percent or so this
year, sources with the National Development and Reform Commission (NDRC)
predicted today. The sources said the sector expected to garner 130 billion
yuan (US$16.9 billion) in profit this year, up 20.9 percent from the
year-earlier level. Last year the sector posted big-margin increases in both
output and profit but a slowdown in export growth. According to the top
economic planning agency, the electronics sector realized approximately 840
billion yuan (US$109.1 billion) in value-added output last year, up 20.1 percent
over the previous year. Its profit reached 107.5 billion yuan (US$13.96
billion), up 23.2 percent. The growth rate was 20 percentage points
higher. The NDRC sources said in 2006, the electronics industry's export
value accounted for 65.5 percent of the sector's gross output, up from the 55
percent level in 2003. Overseas-funded enterprises claimed a share of 79.9
percent of the sector's total sales income last year, up 0.7 percentage points
from the year-earlier level. The growing dependency on international markets
has made China's electronics industry more vulnerable to trade frictions. The
sector is also beset with lack of core technology and decreasing
profitability. The sources said last year profit ratio of China's electronics
industry went down from 4.2 percent in the previous year to 3.3 percent.
Xinhua
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