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China's industrial value-added output, could still exceed the 11-percent growth target set for 2010, despite a slowdown. The Ministry of Industry and Information says it's a result of transformation in the sector.
China's industrial value-added output growth has dropped month-on-month, since the beginning of this year. It grew 13.7 percent in June year on year, down from a 16.5-percent increase in May.
The ministry attributes the drop to last year's high comparison base, and the country's efforts to eliminate outdated capacity.
Zhu Hongren, Spokesperson of MIIT said "Affected by last years tumbling trend, China's industrial development growth will slow down in the second half of the year. Despite that, the industrial value added output may still exceed the 11 percent goal."
The spokesperson said a slower growth rate in terms of industrial production reflects the country's push to accelerate industrial restructuring, and change the growth model.
He also ruled out the possibility of a double-dip recession in the second half, although some challenges and uncertainties still remain... including higher labor costs and a fragile export recovery.
Zhu Hongren, Spokesperson of MIIT said "The slowing down of the industrial development is moderate. It will also be conducive to the transformation of the industrial structure adjustment and pattern development. The industry will not face a double-dip recession in the second half of the year. Our main focus should be on keeping economic policy stable."
The spokesperson also said China would limit new high-energy consuming and high-polluting projects, and push for consolidation in sectors suffering from overcapacity over the rest of year.
The government will continue to encourage the development of emerging industries like pharmaceuticals and information technology, and enhance innovation capacity.