China has achieved a rapid increase in the gross value of industrial output (used before China switched to GNP accounting in 1986), which, according to official Chinese statistics, rose by 13.3% annually between 1950 and 1979. The greatest sustained surge in growth occurred during the first decade, with the rate averaging 22% annually during 1949–60. During 1961–74, the yearly growth rate fell to about 6%, partly as a result of the disruptions brought on by the collapse of the Great Leap Forward (which accompanied the withdrawal of Soviet technicians in mid-1960) and of work stoppages and transportation disruptions during the Cultural Revolution. Growth averaged 10% from 1970 to 1980 and 10.1% from 1979 to 1985. Major policy reforms of 1984 further accelerated the pace of industrial growth, which reached 20.8% by 1988. After a brief retrenchment period in 1989–90 as government policies prioritized inflation control over other concerns, expansion of the country's industrial sector resumed apace, exceeding 20% in 1992 and 18% in 1994. Industrial output was officially up 13.4% in 1995, with state enterprises contributing the majority.
While approximately 50% of total industrial output still derives from the state-owned factories, a notable feature of China's recent industrial history has been the dynamic growth of the collectively owned rural township and village enterprise as well as private and foreign joint-venture sectors. Also apparent has been the spatial unevenness of recent industrial development, with growth concentrated mainly in Shanghai, the traditional hub of China's industrial activity, and, increasingly, a number of new economic centers along the southern coast. The coastal provinces of Jiangsu, Guangdong, Shandong, Shanghai and Zhejiang provinces together account for close to 33% of the country's total industrial output and most of its merchandise exports. One key factor in this industrial geography has been the government's establishment of several Special Economic Zones in Guangdong, Fujian and Hainan provinces, and its designation of over 14 "open coastal cities" where foreign investment in export-oriented industries was actively encouraged during the 1980s.
China's cotton textile industry is the largest in the world, producing yarn, cloth, woolen piece goods, knitting wool, silk, jute bags, and synthetic fibers. Labor-intensive light industries played a prominent role in the industrial boom of the late 1980s and early 1990s, accounting for 49% of total industrial output, but heavy industry and high technology took over in the late 1990s. In addition to garments and textiles, output from light industry includes footwear, toys, food processing, and consumer electronics. Heavy industries include iron and steel, coal, machine building, armaments, petroleum, cement, chemical fertilizers, and autos. High technology industries produce high-speed computers, 600 types of semiconductors, specialized electronic measuring instruments, and telecommunications equipment.
Since 1961, industry has been providing agriculture with farm machines, chemical fertilizers, insecticides, means of transportation, power, building materials, and other essential commodities. Handicraft cooperatives also have been busy making hand-operated or animal-drawn implements. Production of a variety of industrial goods has expanded, increasingly in order to supply the country's own expanding industrial base. In addition to fertilizers, the chemicals industry produces calcium carbide, ethylene, and plastics. Since 1963, great emphasis has been placed on the manufacture of transportation equipment, and China now produces varied lines of passenger cars, trucks, buses, and bicycles. In 1995, output included 1,452,697 motor vehicles (more than double the 1991 figure). Output for 1997 was over 1.6 million units. The industry underwent a major overhaul in the late 1990s in order to stimulate efficiency and production.
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 equipments reached 425 billion US dollars, 28.3 percent more than 2005.
Thermal, hydro and nuclear power industries are the fastest growing of all industrial sectors. At the end of 2004, the installed capacity of generators totaled 440 million kW, and the total generated electricity came to 2,187 billion kwh, ranking second in the world.
Power grid construction has entered its fastest ever development; main power grids now cover all the cities and most rural areas, with 501-kv grids beginning to replace 220-kv grids for inter-province and inter-region transmission and exchange operations. An international advanced control automation system with computers as the mainstay has been universally adopted, and has proved practical. Now China's power industry has entered a new era featuring large generating units, large power plants, large power grids, ultra-high voltage and automation.
Starting in the 1980s, China has invested hugely into creating a number of large-scale modern coal mines, contributing to the gradual increase of coal output, maintained at more than one billion tons annually since 1989. China now has the ability to design, construct, equip, and administer 10-million-ton opencast 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.
Petroleum and natural gas are important energy resources. For eight years running from 1997 to 2004, annual crude oil output exceeded 160 million tons, ranking fifth in the world. Oil industry development has accelerated the growth of local economies and related industries, such as machinery manufacturing, iron and steel industries, transport and communications. In 1996, China's natural gas output surpassed 20 billion cu m, a figure that has increased steadily over the following years, reaching 41.49 billion cu m in 2004.
In 2004, China's nuclear-power-generated electricity topped 50 billion kwh, setting a record high. By 2020, China will build 36-million-kW nuclear power facilities, in addition to the 8.7-million-kW nuclear power generation capacity already in use and under construction.
To relieve the shortage of energy supplies that fetters China's economic growth, China is developing new energy resources, such as wind, solar, geothermal, and tidal power. Its abundant wind energy resources give China the potential for mass-produced wind power. Between 2001 and 2005, the government invested 1.5 billion yuan in the wind power industry. Some 200,000 small wind generators already play an important power generation role in agricultural and pastoral areas and according to government targets the national installed capacity of wind generators is to increase by one million kW every year, reaching 20 million kW by 2020. Given northern China's rich wind energy resources, its wind power industry has attracted domestic and overseas investment and Asia's largest wind power station, with an investment of 10 billion yuan and a capacity of one million kW, will be completed in Inner Mongolia before 2008. Meanwhile, in western China, with a radiation flux of three thousand kwh per day, solar energy has been widely utilized. Asia's largest demonstration base for solar heating and cooling technologies in Yuzhong County, Gansu Province, has become the training center of applied solar technologies for developing countries.




