China's Industrial Production Expected to Grow by 16% in the 4th Quarter

Spokesman of the Ministry of Industry and Information Technology, Zhu Hongren, said on Thursday the value-added production, China's key gauge of industrial growth, has continued a two-digit growth for four consecutive months.

In addition, in the first three quarters, China's industrial production has increased by 8.7% from the same period last year.

"China has made it clear that it will continue its proactive financial policy and loose monetary policy, which ensures the policy support for the stable and continuous growth of Chinese industries. Although, we've had some problems with foreign trade, we expect a growth in exports next year in light of the global economic recovery. Overall, we believe we will have better performance next year."

According to the latest figures from the Ministry of Industry and Information Technology, factory output in China expanded 12.4 percent in the third quarter from the same period last year, while retail sales went up 15.4 percent. In the 12 months to September, production and sales grew nearly 14 percent and 15.5 percent, respectively.

However, concerns still remain in the areas of investment inefficiency and over-capacity, and problems in restructuring and industrial upgrading.

Jin Bei is the director of Institute of Industrial Economics with Chinese Academy of Social Sciences.

"We need to gradually change the bedrock for growth from relying on government stimulus to stable growth for businesses. At the same time, we need address issues of energy efficiency and low emission and industrial upgrading among others to realize sustainable development."

The Chinese Ministry of Industry and Information Technology encourages more investment in the industries of high technology, environmental protection and other areas aimed at improving people's livelihood.

Reforms in revenue, taxes and social security will also be required to help drive consumption.

Wang Ling, CRI news.