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China Wants Stable Industries

China Wants Stable IndustriesChina Wants Stable Industries

Chinese Vice Premier Ma Kai has called for more efforts to stabilize growth in industrial production and improve quality and profitability in the sector.

The industrial sector is the main force of the Chinese economy and its healthy development is of great significance, said Ma during a recent trip to east China’s Anhui Province, Xinhua reported.

The vice premier asked enterprises to increase “effective supply” by upgrading technology and diversifying their products with better quality.

Overcapacity should be reduced and outdated capacity be phased out, said Ma, calling for vigorous promotion of mergers and acquisitions as well as reorganizations during this process.

He vowed to streamline administration, deepen reforms of state-owned enterprises and work to boost their vitality. Enterprises are encouraged to innovate in technology, governance and commercial modes, he said.

The vice premier also promised to reduce financial burden for enterprises and create a level playing field for all market entities.

After months of largely negative reports, the Chinese economy received some good news Friday, when an official survey showed that activity in the manufacturing sector expanded in March for the first time in nine months. The service sector expanded as well.

The official Purchasing Managers’ Index rose to 50.2 in March, up from 49 in February, beat analysts’ expectations for more contraction.

Still, the number was only a tad above the 50-point mark separating growth from contraction.

There was more mixed news. Even as output rose and new orders from home and abroad returned to growth, factories still shed jobs at a significant rate as the government curtailed overcapacity in the industrial sector.

Economists credited the expansion to the stimulus measures enacted over the past year finally kicking in. Surging home sales are increasing demand for materials from cement to steel.

 

Financialtribune.com