G.F. 326
in
tr
Report on Developments in
Hong Kong/Chine nconomic kejat kons
third quarter
1985
General economic developments in China
Measures taken by the Chinese Government over
the past few months to cool down the overheated economy began to show some results in the third quarter. Compared with the corresponding period in 1984, the growth rate in
money terms of industrial output slowed down from 23.1% in
the first half of 1985 to 20.2% in July, 17.4% in August and further to 14.7% in September. Notwithstanding the recent slowdown, China in the first nine months of 1985
achieved a total industrial output value of kmb 614.2 billion, representing 81% of the annual production target for 1985 and an increase of 218 over the same period in 1984.
2.
A balance between light and heavy industries was
maintained, with each accounting for about half of the
total industrial output in the first nine months of this
year. llowever, when analysed by individual industries, the pattern of growth was biased in favour of production
of consumer durables like colour television sets and
household refrigerators, the output of which more than doubled. On the other hand, the increase in output of some key industrial raw materials lagged behind overall growth; for instance, the growth rate of pig iron and steel output was low, at only 7% in the first three
quarters of 1985. Energy, which has long constituted an important bottleneck constraining economic growth, recorded an increase of 11% (1), which was modest in comparison with the growth in industrial output.
Transport and telecommunications remained strained.
Loading and unloading of goods are often delayed due to congestion in the major ports of China.
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