Output has increased 11.7 percent compared with the same period last year.

On the whole, industrial production and its sales have been linked together quite well, said Xu Zhimin, deputy-director of SETC's Bureau of Economic Operations.

However, problems still remain.

Xu said some industries are still facing a weakened demand for their products, and the recovery of the overall industrial profit level is adversely affected by the falling prices of the industrial products, and some small enterprises shut down in the past are secretly reopening.

Xu also warned that coal prices have fallen consecutively in the past four months in most parts of China.

The price dips have resulted from nationwide over-mining of coal since last year, when prices had picked up.

Xu said coal production has seen a 20 percent year-on-year increase for the first half of the year. However, he didn't elaborate on the situation, which was regarded by his commission as one of the problems that have impaired China's economic development.

But Xu said the industrial sectors are performing "generally good" in the January-June period this year.

"Most of the industrial products have been sold and overstock is not a problem for us," said Xu, adding that the sale rate of industrial products is 97.11 percent for the period.

Xu contributed the faster development to advantageous changes in the of international and domestic economic environment. "Externally, our exports have increased by a large margin, and domestically, consumers' confidence has restored," Xu explained.

During the first quarter of the year, the export growth rate achieved a 14.1 percent year-on-year increase. And for the second quarter, the export volume increased by 17.8 percent.

The total sales volume of consumer goods increased 8.6 percent year-on-year during the first six months.

To meet this year's industrial growth target of 10 percent, Xu said industrial producers should focus their energy on improving production efficiency.

(China Daily July 17, 2002)