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Domestic information sector accelerating upgrading pace
Last Updated(Beijing Time):2009-11-19 16:44
By Liu Xiaofeng

Since the third quarter of this year, with the uninterrupted showing up of the effects of China's policies on expanding domestic demand, the electronic information industry has continued the improving trend emerging in the second quarter with the increasingly recovered production growth rate, the slowed down drop rate of export, the narrowed declining rate of economic benefit and the increasingly added active factors in economic operation. So the overall upturn indication became fundamentally clear.

In active response to the international financial crisis, the features of electronic information industry on the stage of transformation and upgrade became increasingly clear: The upgrade trend of those products represented by color TV can be easily found, the independent innovation is being accelerated, the proportion of domestic sales accounts is expanding gradually and the electronic information industry in middle and western China is developing rapidly.

The industry is showing an upturn trend in an overall manner

Statistics shows that the production of the electronic information industry is stably increasing from the bottom level. In the first three quarters of this year, the value-added of the up-scale electronic information manufacturing industry has accumulatively increased by 1.8 percent, which has reversed the decreasing trend occurring in the first half of this year; In September, the growth rate was 6.3 percent, which was 1.5 percent higher than that of August. Increasingly, more key products have experienced increase. In September, the output of 14 products out of 27 products under key monitoring have positively increased, the number of products with increased outputs was 3 more than that of the first half year; Among those products, computers, displays, color TVs and digital cameras continued increasing by 25.5 percent, 9.8 percent, 5.3 percent and 31.8 percent respectively, in addition, mobile phone and integrated circuit reversed the decreasing trend last month and increased by 2.4 percent and 4.7 percent respectively.

Meanwhile, the decline of economic returns in electronic information industry has been slowed down. From January to August, the up-scale electronic information manufacturing industry has realized the income of RMB 2.9618 trillion yuan from its main businesses, which dropped by 4.8 percent than that of the same period last year, and profit of RMB 89.2 billion yuan, which dropped by 21.5 percent than that of the same period last year. The decreasing amplitudes of the above two indicators have been reduced by 3.7 percent and 19.5 percent respectively in contrast with those from January to May. The industries with increased profits among the 11 electronic information industries have increased to 4, among which, the profit of the communication equipment, audio and video product industries has increased by 28.1 percent and 6.4 percent respectively, additionally, the electronic parts industry has made up the deficits and realized surpluses with the profit of RMB 3.5 billion yuan.

The export of electronic information products also took on positive change with gradually reduced decrease. In the first 5 months, the decline of electronic information product export remained above 20 percent each month. From June to August, the decline has been reduced to around 15 percent; In September, the decline has further been reduced to 10 percent.

Industrial structure experienced changes

In recent years, the electronic information industry gradually turned into the new stage of stable development from rapid growth period in the past, the increase of each indicator in the industry began to drop behind the average industrial level. Such a pattern has already been changed that the industrial increase relatively depends on export, foreign enterprise, complete appliance industry and eastern area.

It is acknowledged that the decrease of international demand exerted obvious influence to the export of electronic information manufacturing industry due to its high dependency on it, resulting in further widened gap between the increase of each indicator of the industry and the industrial average level. In the first three quarters, the industrial increase of up-scale electronic information manufacturing industry fell below the industrial average level by 6.9 percent, the investment increase fell below the industrial investment increase by more than 10 percent, additionally, the profit decrease in the first 8 months accounted for about double of industrial average level(-10.5 percent).

According to the analysis of industrial experts, China's electronic information manufacturing industry has become the one suffering the most obvious decline in recent years from an important driving force several years ago. Besides the influence of the international financial crisis, the decline has reflected the overall adjustment and transformation trend of the industry and the deep-rooting problem of weak foundation and unreasonable structure on the other hand.

Thanks to the series of domestic demand expansion policies, the domestic sales proportion in the first three quarters has increased gradually while the overseas sales proportion continued declining. According to statistics, from January to September, the up-scale manufacturing enterprises in the industry fulfilled the production for domestic sales valuing RMB 1.4955 trillion yuan, increased by 13.4 percent than that of the same period last year; In the second quarter, the production value of domestic sales maintained a two-digit increase each month, e.g. the increases in August and September all lived up to more than 20 percent. In the first 9 months this year, the up-scale electronic information manufacturing industry experienced the change of domestic sales from 1:1.72 in the same period last year to 1:1.36 at present, together with the dependence on export(57.6 percent) was reduced by 5.7 percent than that of the same period last year.

Active adaption to challenges

It is said that the investment on communication industry has exceeded RMB 200 billion yuan from January to September after the 3G mobile communication license was officially issued. The investment this year is estimated to exceed RMB 270 billion yuan. Especially after the second quarter, the network construction progress was obviously enhanced, which would drive up the development of communication equipment industry. Meanwhile, many new TFT-LCD panel and module product lines have been put into use this year with the total investment near to RMB 100 billion yuan, which will drive up the industrial development.

The policies as"home appliances going to the countryside" and"replacing old with new" were continuously improved, and the policy-covered products and regions were further increased, which is bound to stimulate the rural consumption on home appliances. Furthermore, the integration of three networks will be accelerated, the relevant measures will be launched soon and the telecommunication operators will order more than 1 million laptops in the year, which will also bring new opportunity for computer and network equipment industry.

Based on current situation, the complete appliance sector in the industry witnessed faster recovery. Statistics shows that from January to September, the sales value of audio and video products, measurement instrument and professional equipment industry has increased by 1.4 percent, 6.9 percent and 13.7 percent respectively, constituting the main force for the upturn of the whole industry. The product structure of complete appliance is accelerating its adjustment. Up to the end of this September, the LCD TV production took up 55.1 percent of the color TV output from 31.2 percent of the same period last year, and the notebook computer production accounted for 83.3 percent of micro-computer output, increased by 9.5 percent than that of the same period last year.

Experts predicted that the development of electronic information industry would be accelerated; the total income from manufacturing industry this year would be similar to the level of last year; the export of electronic information product would continue negative growth; and software industry would maintain an increase around 20 percent in terms of income. In 2010, the industrial production will see further improvement, besides, the electronic information industry is estimated to increase income by 5 percent, among which, the export will increase slightly in contrast with this year and the software industry will witness an increase around 18 percent in terms of income.
Source:CE.cn 
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