cent higher than the same period in 1976. Total production for 1977 was about 90 million tonnes. A higher growth rate is important if output is to exceed the growth in domestic requirements and provide for exports.
In 1976 the completion of the pipeline network in North-East China was announced, but the only new pipeline specifically mentioned that year was the 140 km line linking the Maoming refinery (in South China) with the port of Chanchiang. Expansion of port facilities continued, as did construction of large petrochemical complexes at Peking, Canton, Shanghai, Tientsin and Shenyang, using imported equipment.
Offshore exploration and production also continued. Aerial surveys in the southern part of the Yellow Sea, East China and South China Seas were announced as completed in July 1977. Prospecting is thought to have been successful near Hainan Island. Three oil rigs from Singapore were delivered, and a second-hand rig and supply ship were purchased from Norway.
Rapid development of the oil industry is hindered by the lack of advanced equipment and technology, particularly for offshore production. Imports of such equipment in the future may therefore increase. Oil resources seem extensive and the recent low rate of production should pick up under the new leadership.
The Tangshan earthquake in July 1976 severely damaged China's largest coal mine at Kailuan (annual production about 25 million tonnes or 6 per cent of national output). It seems unlikely therefore that 1976 growth exceeded 4 per cent, raising output to 435 million tonnes, from 420 million tonnes in 1975. Coal production in 1977 probably approached 490 million tonnes.
The government's desire to expand exports of oil will put increased demands on the coal industry to satisfy domestic requirements. Substantial growth in output can be achieved only by increased mechanisation. Imports of foreign equipment, much of which has been purchased from British firms in the past, will probably play an important part.
China claimed an "increase" (unspecified) in electric power output in 1976, which suggests that growth fell below the 10-11 per cent annual increase of recent years, the minimum required to sustain China's rapid rate of industrial growth of the past decade. However, because of industrial problems in 1976, power demand was probably met. Assuming a 7 per cent increase, power production would have reached 130 billion kWh. Earthquake damage to the Tangshan power plant probably affected supplies to the important Peking-Tientsin-Tanshan grid and it was not until November that the plant was reported to be back in full production. Japanese equipment being installed at Tangshan was badly damaged.
The installation of increasingly large units in power stations is continuing, and small hydro-electric power stations are growing in number. Most of the large power plants imported over the last four years should now be on line, and when they reach full capacity power output will increase by 15 per cent. Peking reported that power output had increased by 9.8 per cent in 1977 but power shortages were also reported and the need to save electricity is being stressed.
Agriculture
Agriculture had a poor year in 1976, output barely keeping pace with the 1.6 per cent annual growth in population. Despite the Chinese claim that the 1976 grain harvest was a record, the increase over 1975 was only about 1 per cent and 1976 total
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