Light industry experienced high growth in the first six months this year as a result of favorable government policies and bullish exports, the China Light Industry Association said.
The entire industry's profit for the first half year totaled 42.27 billion yuan (US$5.1 billion), a rise of 22.14 percent compared with that for the same period last year.
The figure accounted for 18.56 percent of the total profits of the country's manufacturing industry.
A major foreign currency earner for the country, light industry turned in a good foreign trade performance in the first six months, said Chen Shineng, chairman of the China Light Industry Association.
Exports amounted to US$40.26 billion, up 13.01 percent year-on-year, accounting for 28.34 percent of national exports from January to June.
The industry's imports totaled US$11.73 billion, up 5.35 percent. A favorable trade surplus was realized in the first six months.
The product mix of exports also saw an improvement, and products with higher technological content such as mechanical and electrical products achieved higher growth, Chen said.
The first quarter output of the industry soared by 16.73 percent to 1.085 trillion yuan (US$131.03 billion), which laid a solid basis for the entire year.
About 96.28 percent of the products were sold.
Most sectors of light industry witness a two-digit growth in output in the first six months.
For example, output of the sugar industry jumped 61.5 percent from January to June; the food industry, 21.68 percent; and the home electric appliance industry, 19.9 percent.
The hikes were attributed to policies adopted that enlarged domestic demand, limited total output, reduced surplus production capacity and eliminated outdated equipment, said Chen.
In addition, increased market demand led by seasonal factors led to the output of some key products growing rapidly and contributing significantly to the growth, Chen said.
As a result, household electrical appliances, food and drink, and pulp and paper, witnessed a profit increase month by month.
Because 2002 is China's first full year in the World Trade Organization and light industry is an export oriented sector, Chen said his association will continue to tap the industry's potentials in foreign markets for the rest of this year.
A focus will also be put on the study of light industrial standards in foreign countries.
"We will pay special attention to standards related to human health, security, environmental protection and to technical barriers on trade," Chen said.
Through study, the association will help the industry's products meet international standards, and even higher standards in developed countries, in an attempt to upgrade the industry's composition and expand foreign market share, Chen pointed out.
(China Daily August 12, 2002)
