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Economic growth facing downtrend in H2

cntv.cn | Updated: 2013-08-14 14:52

China's economy grew at slower pace in the first half of this year and with it--industrial growth also weakened.

Miao Wei, Minister of Industry and Information Technology, tells CCTV just where China's industrial sector stands as well as what the government will do to support industry in the rest of the year.

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China's large industrial companies' output grew 9.3 percent in the first half versus last year. Miao Wei says although the growth was not high, it was within expectations. But the minister was candid about challenges in the second half.

"The economic situation will be more complicated in the latter half of the year, and growth may face downward possibilities. For example, the weak external demand will not be improved. Meanwhile, overcapacity is a big problem, and enterprises especially small and medium sized ones will face more stress in operations." said Miao Wei.

One area that may outperform is the information industry, as the State Council has policies in the pipeline to accelerate growth.

As for small and medium sized enterprises, Miao points out the four problems they face.

Starting from August 1st, small enterprises with monthly sales below 20 thousand yuan will not have to pay value-added tax and business tax. It's just one of the government's initiatives to help out small firms. At the same time, restructuring will continue -- Miao Wei says the ministry will speed up closing down outdated capacity, and monitor local governments to totally dismantle the facilities.

Economic growth facing downtrend in H2

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