G.F. 326

CONFIDENTIAL #3

2

terms

(2)

For the first half of 1988 as a whole, the

value of gross industrial output was Rmb 577.3 billion,

17.2% higher than in the first half of 1987.

3.

Within the industrial sector, the growth rates

of the non-state sectors in the first half of 1988 were

even higher than average. Output of township

industries

(3)

increased by 32.8% in real terms to a

value of Rmb 76.8 billion, while that of Sino-foreign

equity joint ventures, cooperative joint ventures and

foreign-owned enterprises increased by 55.3% in real terms

to a value of Rmb 17.2 billion.

4.

The growth rate of light industries was

slightly faster than that of heavy industries. In the

first half of 1988, the output of light industries rose by

18.1% in real terms to Rmb 290.7 billion, while that of

heavy industries rose by 16.2% to Rmb 286.6 billion. The

growth momentum in the industrial sector, which has been sustained since the fourth quarter of 1986, was exerting

strong pressure on the bottleneck sectors. In the

(2)

Gross industrial*

output

(Rmb bn)

Year-on-year growth rate

(8)

1986 01

1987 Q1

1988

aaaa aaaa aa

198.7

4.4

Q2

229.7

5.3

Q3

223.6

8.8

04

244.6

15.9

226.7

14.1

Q2

266.0

15.8

03

259.2

15.9

Q4

277.4

13.4

264.6

16.7

312.7

17.6

Q2

At constant (1980) prices, excluding output from village-run enterprises.

(3) Village-run enterprises not included.

CONFIDENTIAL **

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