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China expects 11pct industrial output growth in 2012

Reuters quoted China industry minister as saying that China industrial output is expected to grow 11% for 2012 easing from an estimated 13.9% in 2011.

The forecast by Mr Miao Wei the Minister of Industry and Information Technology will also serve as the official target for China's industrial output.

Mr Miao was quoted by the radio as saying that China industrial development in 2012 would not be optimistic partly due to an uncertain global economy.

China industrial sector has lost steam in recent months with annual industrial output growth falling to 12.4% in November from 13.2% in October and down from the year's high point of 15.1% in June.

The annual rise of China industrial output which covers enterprises with minimum annual revenue of CNY 20 million is closely correlated with GDP growth in the world's second biggest economy.

An 11% annual expansion in industrial output is regarded by Beijing as appropriate to achieve an annual 8% GDP growth rate. Mr Miao ministry had an 11% target of industrial output growth for both 2010 and 2011.

Mr Huang Libin a senior official with the industry ministry said at an online briefing last month that China's factory output growth may hit 12% to 13% in 2012.

Mr Miao said China would try to cut energy consumption for every yuan of industrial output by 5% in 2012 and cut water consumption by 7%.

Mr Miao was quoted as saying that "We will launch implementation plans for mergers and acquisitions in sectors like steel, automobiles and cement."

In addition, the ministry would try hard to boost the growth of strategic emerging industries and small industrial firms.