Industrial Outlook:In 2003, the industrial added value of the state-owned enterprises as well as non-state-owned enterprises which have

an annual sales volume of five million yuan or above was 4,104.5 billion yuan, and the amount of profit reached its highest ever level of 815.2 billion, or an increase of 17 percent and 42.7 percent, respectively, over the previous year, presenting a good situation of the simultaneous development of speed, quality and profit. Since 1996, China has been in the lead in the production of steel, coal, cement, farm-use chemical fertilizer and television sets.

Automobile Sector An example of an emerging heavy industry is automobile manufacture, which has soared during the reform period. In 1975 only 139,800 automobiles were produced annually, but by 1985 production had reached 443,377, then jumped to nearly 1.1 million by 1992 and increased fairly evenly each year up until 2001, when it reached 2.3 million. In 2002 production rose to nearly 3.3 million and then jumped again the next year to 4.4 million. Domestic sales have kept pace with production. After respectable annual increases in the mid- and late 1990s, sales soared in 18 the early 2000s, reaching 3 million automobiles sold in 2003. With some governmental controls in place, sales dipped to 2.4 million sold in 2004. Sales automobiles and vans reached 13 million in 2010. So successful has Chinas automotive industry been that it began exporting car parts in 1999. China began to plan major moves into the automobile and components export business starting in 2005. A new Honda factory in Guangzhou was being built in 2004 solely for the export market and was expected to ship 30,000 passenger vehicles to Europe in 2005. By 2004, 12 major foreign automotive manufacturers had joint-venture plants in China. They produced a wide range of automobiles, minivans, sport utility vehicles, buses, and trucks. In 2003 China exported US$4.7 billion worth of vehicles and components, an increase of 34.4 percent over 2002. By 2004 China had become the worlds fourth largest automotive vehicle manufacturer.

Steel Concomitant with automotive production and other steel-consuming industries, China has been rapidly increasing its steel production. Iron ore production kept pace with steel production in the early 1990s but was soon outpaced by imported iron ore and other metals in the early 2000s. Steel production, an estimated 140 million tons in 2000, rose to more than 420 million tons by 2007. Before the first five-year plan (195357), China had only one major steel center Anshan, in the northeastand several minor ones. All these produced 1.93 million tons of pig iron and 1.35 million tons of steel in 1952. By 1995, China was producing 92,970 million tons of crude steel and 101,700 million tons of pig iron. China had one trillion tons of confirmed coal reserves and an estimated five trillion tons of coal reserves and 48.7 billion tons of iron ore in 2000. Anshan continues to be the hub of the industry, but other huge steel complexes have been constructed at Baotou, Benxi (about 50 km east of Anshan), Taiyuan, Wuhan, and Ma'anshan. Power Industry Of all Chinese industries, the thermal, hydro and nuclear power industries have developed the most rapidly. Since the 1990s, the installed capacity of generators increased from 100 million kw to 385 million kw by the end of 2003. The country produced 1.9108 trillion kwh of electricity in 2003. Presently, China is the world's second in the installed capacity of generators and generated electricity. Main power grids now cover all cities and most rural areas of China. Power grids of 500 kv have begun to replace the old 220-kv grids in undertaking cross-provincial and cross-regional transmission and exchange operations. An advanced control automation system with computers as the mainstay has been universally adopted, and has proved practical. The establishment of the six cross-provincial (or cross-autonomous regional) power grids, excluding those in northwestern China, and five independent provincial 500-kv main power grids, and the completion of a series of large power stations indicate that China's power industry has entered a new era featuring larger generating units, large power plants, large power grids, ultra-high voltage and automation. The sufficient power supply in China is mainly because of the rapid growth of the fuel coal output. Starting from the 1980s, the Chinese government made a great investment in the

construction of a large number of modernized coalmines, resulting in the gradual increase of coal output. Since 1989, the annual coal output has maintained more than one billion tons, meeting the needs of the national economic development. Now China has the ability to design, construct, equip and administer 10-million-ton open-cut coalmines and large and medium-sized mining areas. China's coal washing and dressing technologies and abilities have constantly improved and coal liquefaction and underground gasification are being introduced. In 2001 China exported over 80 million tons of coal, becoming the second largest coal exporting country in the world.

Machinery manufacturing China's machinery manufacturing industry can provide complete sets of large advanced equipment, including large gas turbines, large pump storage groups, and nuclear power sets, ultra-high voltage direct-current transmission and transformer equipment, complete sets of large metallurgical, fertilizer and petro-chemical equipment, urban light rail transport equipment, and new papermaking and textile machinery. Machinery and transportation equipment have been the mainstay products of Chinese exports, as China's leading export sector for successive 11 years from 1996 to 2006. In 2006, the export value of machinery and transportation equipment reached 425 billion US dollars, 28.3 percent more than 2005