China’s Economy Running on All Cylinders During First Quarter of 2007

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Researched by Industrial Info Resources (Sugar Land, Texas). According to a National Reform and Development Commission (NDRC) monitoring report, China’s economy continued to grow during the first quarter of 2007. The industrial Comprehensive Index of Economic Efficiency, an index established by the Chinese government to measure economic growth, reached 186.51 in the first two months of the quarter, an increase of more than 12% when compared with the same period in 2006. Industry profit was $38 billion, an increase of 43.8% when compared with the same period in 2006, and a record high since May 2004.

Coal production output increased 14.8% in the first quarter compared to first quarter 2006. Power supply and demand remained basically static; power generation output increased 15.5%, which is 4.4% higher than the rate in previous year. Refined product supply remains stable and the processing volume of crude oil increased 5.6%. Cargo transportation volume increased 11.7%, the transportation of key materials such as coal, petroleum, cotton, chemical fertilizers and pesticides is secured.

Industry restructuring and equipment upgrades in major industries continue. The metallurgy, construction material, petrochemical and machinery industries are at the forefront of this restructuring. Export delivery value of machinery in the first quarter increased 39.5%, which is 12.9% higher than the same period last year.

New progress has been achieved in energy conservation. National coal consumption in power supply is 365 g/kWh in the first quarter, which is 9 g/kWh lower compared to last year. Comprehensive energy consumption for cement production was reduced more than 5% compared with the same period in previous year. Comprehensive energy consumption for large and middle-scaled iron and steel enterprises declined 4.1% and water consumption per ton declined 20.9% in the first two months.

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