Although the output of China's information industry jumped 24.3 percent year on year to 3.3 trillion yuan (US$412.5 billion) in 2005, its profit rate dropped to 3.3 percent from previous year's 4.22 percent, the China Securities Journal reported.

 

In 2006, China's information industry output is expected to hit 4 trillion yuan, up 21 percent and ranking the second in the world after the United States, the newspaper quoted Vice Minister of Information Industry Lou Qinjian as saying.

 

Xing Xiaojiang, an official with the National Development and Reform Commission (NDRC), said although the sales volume of information industry grew 24 percent in 2005, the growth rate was still lower than the average growth rate of all industrial sectors.

 

The profit rate of the information industry last year was also much lower than the average profit level of China's all industrial sectors, Xing said.

 

He suggested China's information industry alter the traditional growth mode that has been heavily hinged on size expansion and focus increasingly more on independent innovation, so as to enhance core competitiveness.

 

(Xinhua News Agency January 24, 2006)