Starting from 1999 the heavy and chemical industries developed at a higher speed than that of the light industry and in recent years the former continuously widens the gap with the latter in terms of development speed，which was even continuously intensified during the 10th Five-Year Plan period，say，in 2004 the growth rate of the heavy industry was 3.5%more than the light industry。As the comparative growth rate of the heavy industry was faster than the light industry，the proportion of the heavy industry was continuously increased during the 10th Five-Year Plan period，respectively increased by 59.1%in 2000 and up to 67.6%in 2004，hitting the record of 66.6%in 1960.With the rapid development of the heavy and chemical industries，China’s excavating industry will usher in a favorable growth。
Chapter 15
Iron and Steel Industry
During the 10th Five-Year Plan period，China made substantial headway in its iron and steel industry development：its industrial scale continuously expanded；its product structure was remarkably improved；the iron and steel industry demonstrated remarkable achievements，respectively in improvement of utilization efficiency of resources，particularly utilization efficiency of energy，technological equipment level and technological level and the overall economic benefit level；the industrial organizational structure and regional allocation of the iron and steel industry were oriented towards the rational development and the industrial international competitiveness was remarkably enhanced。However，compared either with the requirements of the scientific development perspective and the neo-industrialization road，or with the developed countries，China’s iron and steel industry is still confronted with a series of outstanding contradictions and problems，such as，extensive economy growth mode，overstrained environment pressure，exorbitant expansion of its industrial production capacity，
danger of excessive industrial production capacities。In order to address the above contradictions and problems and meet with the requirements of the ever-increasing market demands for the iron and steel industry by our national economic development during the 11th Five-Year Plan period，it is urgent to transform the growth mode of the iron and steel industry，to enhance the independent innovation capability of the iron and steel industry，and most impotently to transfer the extensive development mode with emphasis on quantity onto the road of long-time and sustainable development characterized by the intensive development track with emphasis on energy-efficiency，enhancement of resources utilization rate，reduction of pollution，diversification of products and upgrading quality and accentuation on economic efficiency and premium put on the development of the recycling economy。
Chapter 16
Review and Prospect of China’s Textile Industry Development
The textile industry has always been an important industry in our national economy，playing an indispensable role in creating more employment opportunity，market prosperity and balance of payments equilibrium。During the 10th Five-Year Plan period，our country’s textile industry underwent even more tests from the changes in the domestic and overseas economic environments，but the whole industry maintained steady and rapid growth momentum。The fixed asset investment expanded rapidly，so did the production capacity and turnover and the marked growth of foreign exchange earnings from export。However，in the mean while，the contradictions of the textile industrial structure were not fundamentally solved and the overall technological equipment level was comparatively backward。The product innovation capacity was weak and added value was low and the construction of ecological environmental protection was also backward。During the 11th Five-Year Plan period，
China’s textile industry will face tremendous change in the domestic and overseas environments and the domestic demand growth will become the motive power to fuel the development of our country’s textile industry。Besides，the resource environment will exert further restriction to the textile industry’s development。The competition in the world textile product trade will be fiercer，and there will come the post-quota period during which there will in turn appear more trade conflicts and the more non-tariff barriers。In order to adapt to the changes of the business operation environments at home and abroad，it is highly suggested that the central government will take effective measures to accelerate the adjustment of the textile industrial structure，encourage the textile enterprises to push forward the recycling economy，promote the marketlization of cotton and the coordinated development of the chemical fiber raw materials，guarantee the sufficient supply of the main resources，strengthen the industrial self-discipline and give impetus to the textile enterprises to implement the“going-out”strategy so as to mitigate operational risks。
Chapter 17
Chemical Industry
During the 10th Five-Year Plan period，China’s chemical industry ushered in its rapid development，with its economic aggregates considerably increased，with its product structures further optimized，the export and import scale further expanded，tremendous breakthrough being made in technological innovation and economic efficiency continuously improved。However，China’s chemical industry still faces the problems like insufficient independent innovative capability，lower product grade and added value，small scale of enterprises and lower utilization efficiency of energy，and also faced austere pressure from the restriction of environmental capacity and scarcity of resources。It is predicted that during the 11th Five-Year Plan period，China’s chemical industrial will maintain the rapid momentum in development。Nevertheless，under the pressure of the tight supply of resources，particularly energy，
and the price hikes，the industry will suffer from the downturn in profit growth。During the 11th Five-Year Plan period，China’s chemical industry will continue to gain its rapid growth，but the industry must follow the guideline of the scientific development philosophy，adjust its industrial structure，optimize its industrial allocation，enhance the independent innovation capability，vigorously develop the recycling economy，make great breakthrough in a large batch of influential and key technologies，raise the industrial technological level and product grades，reduce consumption in energy and resources，emission of pollutants and wastes，and realize the sustainable and sound development of China’s chemical industry。
Chapter 18
Petrochemical Industry
During the 10th Five-Year Plan period，in spite of the grave restraints of resources and the great pressure of the continuous hike of the oil price，China’s petrochemical industry remained the industry with the fastest growth rate，the most efficient economic returns and the most remarkable technological progress in China’s industrial development history。In the fiver years from 2001 to 2005，China’s petrochemical industry over-fulfilled all the targets as set forth in the 10th Five-Year Plan on an all-round way。With 2005 compared with 2000，the petrochemical industry gained a 48.9%increase in terms of its assets with the annual growth rate of 8.3%；the sales income increased by 151.6%and the average annual growth rate reached 20.3%；the profit growth climbed up to 187.2%with the average annual growth rate of 23.5%。
Compared with the whole industry and the national economic development，petrochemical industry ranks as one of the industries in China that boasts the fastest growth speed and the best quality。The outstanding achievement is obtained directly as a result of the economic restructuring。Meanwhile it should be acknowledged that it is the result owing to the new historical pattern of the industry openness brought about by China’s accession into WTO。However，the future development of the petrochemical industry will be challenged by severe restraints of resources and environment。Crude oil price keeps on a high position will further aggravate the risks in investment in the petrochemical industry and the more and more rigorous environment protection standards will pose new challenge tot the petrochemical industry。Besides，the technological advancement of the international petrochemical industry is noticeably accelerated，so the competition in the international market is growing fiercer。So the future development of the petrochemical industry shall be guided by the scientific development philosophy with a view to fundamentally transforming the industrial growth pattern and taking the road of the intensive integration of refineries and petrochemical plants，characterized by high technology，development of the zone economy and scale-up development，positively rely on the scientific progress，optimizing the technological process，lowering the consumption of the raw materials，elevating the quality of the products and enhancing the international competitiveness of the petrochemical industry。
Chapter 19
Engineering Industry
The 10th Five-Year Plan period represents one of the most favorable development periods for China’s engineering industry。Through several years’rapid development，China’s engineering industry grew by leaps and bounds and attained a new height。The whole industry complied with most of the requirements as set forth in the overall objectives of the 10th Five-Year Plan in advance in 2004.The industrial scale was rapidly expanded；economic benefits were continuously enhanced，the output value of new products increased in a continuous way；product structure was further upgraded；the total import and export volume gained an ever-increasing growth and the trade deficit was sharply minimized。During the 10th Five-Year Plan period，the fast growth of China’s engineering industry benefited mainly from the surging demands fueled by the state macroeconomic policies，yet it still followed the extensive growth mode。Because of the insufficient technological capability，China’s engineering industry are still faced with the structural problems that have long existed and dampened its smooth development of the industry，such as，its product structure with medium and small-grade products as the core，
lower economic benefits，lack of international competitive force，lack of the mutual cooperation and coordination between enterprises in socialized coordinating relationship，all of which were not fundamentally solved yet，and with the further expansion of China’s reform and opening up and the deepening of its participation of the international division of labor，China’s engineering industry will face the danger of being locked in and being hard pressed by the low-end industrial chain。So upgrading the independent innovation capability and technological integration capability is the only approach for China’s engineering industry to transform its growth mode。It is imperative to make breakthrough in respect of the critically common and key technology；emphasis shall be placed on the development of crucially important technological equipment，thus promoting the enhancement of the overall independent innovation capability；promoting the formation of the cornerstone enterprises in the industry as the carrier of the independent innovation of the engineering industry。Therefore，the government，
intermediary agencies and enterprises shall pool their efforts to bring their respective potentials into full play，and place the government’s roles and functions in promoting the development of the engineering industry in place。Efforts shall be made to tap the multi-level functions and roles of the intermediary agency organization in formulating the industry’s long-range plans，organizing and coordinating service and improving the industry’s technological standards，etc。，setting up and amplifying the corporate mechanism conducive to the technological innovation。
Chapter 20
Automobile Industry
During the 10th Five-Year Plan period，China’s automobile industry took up the challenges from China’s entry into the WTO but with great success，hitting an all-time high in terms of its development。Now China’s automobile industry has ranked in the third place in the world automobile industry。The scale of China’s automobile market has leapt into the front ranks of the world。China’s automobile industry realized the historical transformation with more export than import and its opening up to the outside world gained continuous momentum。However，during the 10th Five-Year Plan period，China’s automobile industry was faced with more and more serious problems：resource（particularly energy）and environment restriction；slow adjustment of industrial organizational structure；irrational product structure；insufficient independent innovation capability，all of which set restriction to the development of China’s automobile industry。During the 11th Five-Year Plan period，only when China’s automobile industry follows the guideline of the scientific development philosophy，takes the road of sustainable development and sets great store by the i ndependent innovation capability as the strategic core can China’s automobile industry complete the transfomation from the auto industrial country to auto industrial powerhouse。
Chapter 21
Electronic Information Industry
During the 10th Five-Year Plan period，China’s electronic information industry gained a strong momentum in growth and topped all other industries in terms of the industrial scale and export scale。The electronic information industry makes an ever-increasing contribution to the national economy。Up to now，three electronic information industrial clusters with marked characteristics have been established in the Pearl River Delta，the Yangtze River Delta and the Circum-Bohai Sea Region。Compared with the end of the 9th Five-Year Plan period，the scale and strength of the top 100 enterprises in China’s electronic information industry have been greatly enhanced。However，under the backdrop of fast growth，there are some problems not to be overlooked，which will affect the long-term development of China’s electronic information industry。The remarkable problems are typically manifested its industrial growth
characterized by quantity-centered expansion and inferiority of growth quality；though the corporate innovative awareness and capability have been greatly enhanced，yet the overall R＆D investment is still low，the independent innovation capability is still poor and the dependence of foreign investment to boost its industrial growth is further strengthened。The fundamental solution of these problems depends on the transformation of the growth mode of the electronic information industry：transforming from the foreign-oriented processing development mode to the independent R＆D development mode based on the domestic demands。During the 11th Five-Year Plan period，whether the growth mode of the electronic information industry will have a marked change depends on the overall adjustment of the relevant policies。However，the adjustment of these policies must give full account of the three restrictions impairing the current development of the electronic information industry，respectively，environment，talented personnel and habitually policy-entrenched thought。
Chapter 22
Pharmaceutical Industry
In the past 26 years from the initial reform and opening up，China has formed the comparatively consummate pharmaceutical industry system and pharmaceutical circulation network and has developed itself into a pharmaceutical powerhouse in the world。It has formed various systems in the industry of the production of chemical raw material medicines，chemical medicine dose，Chinese traditional medicine and biopharmaceutical，and gradually developed into the orientation of scientification and standardization。Particularly during the 10th Five-Year Plan period，emphasis on the development of chemical raw material medicines，modern biological technology，modernization of the traditional Chinese medicine and the acceleration of the restructuring of the pharmaceutical circulation system give a boost to the corporate structural adjustment and the product technology renewal，thus China’s pharmaceutical industry maintains its development at a faster speed and scores remarkable results。The pharmaceutical industry realizes the average annual growth rate of 17.49%in terms of its the total output value，cultivating a
large batch of large-scale enterprises with the international competitive force and accumulating a large contingent of scientific and technological talents and management talents in the pharmaceutical industry。During the 11th Five-Year Plan period，it is necessary that the pharmaceutical industry conscientiously implements the scientific development philosophy，persistently taking the new-type industrial road，transforming the economic growth pattern and energetically promoting the technological progress，increasing the capital injection into the phannaceutical research and development，adjusting and optimizing the structure of the pharmaceutical industry，upgrading the independent innovation capability so as to develop biological engineering medicines supported by the modern bioengineering technology，multiple series of medicines based on the chemical raw material medicines，series of medicines based on chemical medicine dose and modern medicines based on the modernization of the traditional Chinese medicines，and realize the sustained development of the pharmaceutical industry。
Chapter 23
Home Electrical Appliances Industry
During the 10th Five-Year Plan period，China’s home electrical appliances industry maintained acontinuous steady development，scoring satisfactory results and it has turned out to be the largest base of the home electrical appliances industry in the whole world，constantly consolidating the further expansion of the advantageous industries in merger and acquisition and further improving the internationalization of the domestic enterprises。However，the internal and external environment where China’s home electrical appliances industry survives changes considerably，producing many adverse impact on its future development：due to the price hike of the raw materials，the appreciation of RMB，the downturn of the sales profit and the lower of the system of refunding taxes on exported goods，which slices off the profits of the whole industry；the home-made brands lack the competitiveness in the high-profit
high-end market；the chronic reliance upon the product export to fuel the growth of the home electrical appliances added the export cost to the industry which was confronted with higher and higher non-tariff barriers，etc。All of these requires China’s home electrical appliance industry to seek new approaches for its further growth，respectively by taking the following measures：enhancing the self-innovation capacity will be the strategic bearing point for the sustainable development of China’s home electrical appliances；participating in international operation will be a logical choice；implementing the brand internationalization strategy will be a vital move to elevate the position of China’s industrial chain。Furthermore，the government shall have to take a series of guiding policies to transform the economic growth pattern of the enterprises。
Chapter 24
Light Industry
During the 10th Five-Year Plan period，China’light industry experienced fast growth and China became the largest light industrial product manufacturer and exporter，yet as the industry is now at the stage of extensive growth，so many problems have cropped up。The development of light industry during the 11th Five-Year Plan period is to realize the strategic transformation from extensive growth mode to intensive growth mode。The practical approach to realize the intensive growth of the light industry lies in the scientific progress with independent innovation as the core and structural adjustment and informationization。The technical key points for independent innovation in light industry
are mainly reflected in two aspects：one，the light industrial equipment industry that is technically weak but crucially concerned with the existence of the whole industry；two，the key manufacturing technology that will play an important and leading role in the intensive growth of the light industry。Then the key industries of the structural adjustment is concentrated in two categories，respectively，papennaking and food industries that show great promise for the future and fast demand growth；and the relevant industries，such as，home electrical appliances，ceramics and plastics，etc。The specific measures taken to tackle all these problems include：firstly，striving to make breakthrough in positive adaptation and assimilation of foreign scientific and technological achievements，re-innovation and integrated innovation；the relevant state departments and the light industry associations shall determine the key technological projects in which great breakthrough shall be made and these projects shall be granted with more state financial and technological input；
great efforts shall be made to steer the limited capital and technological strength towards the key projects that focus on the application and modification of imported equipment and technology and integrated innovation by relying on the large-scale key and major enterprises and superior enterprises rather than the duplicated introduction or import of equipment from foreign countries；secondly，speeding up the construction of the innovation service system of the medium and small-sized enterprises；thirdly，efforts shall be made to cultivate the innovation-oriented and technological talents；fourthly，strengthening the formulation of the industrial regulations and rules and the supporting structural adjustment policies，controlling the aggregates and optimizing the industrial structure。Through the implementation of these vigorous policies and measures，it is expected that great breakthrough shall be made in the structural adjustment of the key light industrial equipment industries oriented towards independent innovation，thus promoting the further improvement of production concentration in home electrical appliances，paper-making and food industries and forming the corporate groups with the annual sales revenue of several RMB 10 billion and RMB 100 billion and about five internationally famous brands。
Chapter 25
Construction Materials Industry
Everything taken into consideration，China’s construction materials industry gained rapid growth during the 10th Five-Year Plan period and particularly gained comparatively faster growth in the overall output，production capacity and export volume and furthermore，the technological level and technological structure of the industry were considerably improved。However，after 2004，production capability surplus gradually aggravated due to the sluggish market demand growth and the business operation returns of the building material enterprises took a down turn on a large scale under the pressure of the falling price and the escalation of the production cost。In 2005 the industry slumped into a low ebb。The growth and fluctuation of the industry during the 10th Five-Year Plan period，more or less，reflected that this industry didn’t completely break away from the road of the extensive growth characterized by quantity-centered expansion。In the future，the serious problems in China’s construction material industry will not be ironed out and obviously dissolved，which are particularly demonstrated in the following aspects：the comparatively backward technologies will still hold sway in a large percentage；the industrial concentration will be still low；it is impossible to bring the structural adjustment into a satisfactory completion；resources will be extremely consumed and the environmental pollution will go from bad to worse；there is still a far cry from the foreign counties in terms of energy consumption and emission indexes。
Therefore，speeding up the transformation of the economic growth mode and the promotion of the industrial structural adjustment will be a major subject baffling the industry for quite a long period。During the 11th Five-Year Plan period，China’s construction material industry will lay great emphasis on energy conservation and resource efficiency，protection of biological environment and enhancement of the product grades and quality；it will also take full advantage of the industrial production capacity surplus to energetically push forward the structural adjustment and industrial upgrading。The specific measures taken to tackle these problelms include：setting up raw material base and improving the comprehensive utilization rate of the mineral resources；vigorously speeding up the structural adjustment and setting store by low consumption，low pollution，high quality and high efficiency；recycling the industrial waste residue and promoting the recycling economic improvement in the industry；carrying out the clean production，development and utilization of environment-friendly building materials；perfecting the quality in utilizing foreign investment to boost the building material industry and optimizing the export structure of the building material products。
Chapter 26
Regional Industrial Development Trend and Policy Orientation
During the 10th Five-Year Plan period，the national industry gained a strong momentum in growth，which is characterized by obvious acceleration of the industrialization，steady improvement of the industrial economic efficiency and the ever-increasing impetus given to the regional growth by the industry。With the continuous promotion of the reform and opening up and the acceleration of the economic globalization，in recent years，China’s regional industrial development and industrial allocation take on some novel trends，including the obvious trend of concentration of the industrial allocation，the continuous growth of the industrial park expansion，the rapid development of the regional characteristic industries and the fast upgrading of the regional industrial structure。However，it is evident that there are still a lot of problems impeding the development of China’s regional industry。
The gap of the regional industrial development is continuously widened；the contradictions between industrial concentration and coordinating development is sharply aggravated；the regional endogenous development lacks the necessary driving force；the problems related to the sustainable development of the regional industry have come to prominence and the exorbitant tax burdens imposed upon the regional industry are quite irrational。Therefore，during the 11th Five-Year Plan period，it is an urgent task to rapidly formulate the industry-related efficient land utilization policy and reasonably orient the rationalized industrial agglomeration and transfer，consolidate the supervision and control over the space of the industrial development，energetically develop the regional characteristic superior industries so as to promote the optimization of the industrial allocation and the coordinated development of the regional industries in all places。
Chapter 27
The Sustainable Development of the Industry in East China
In recent five years，the industry in east China has gained a strong momentum of rapid development with the remarkable pro-heavy industry orientation，but the profit growth and contribution of the industry dropped considerably。The striking problems are mainly include the continuous price hike of the energy and resources，the decline of the eco-environment carrying capacity，short supply of land and the scarcity of the high-caliber talents，and at the same time it demonstrates that the development of the region must cast off the traditional extensive development mode featured with high input and high consumption。So during the new development period，the region shall be encouraged to take the initiative to develop itself with its core targeted towards setting a typical example to lead the whole country in pursuit of development on the scientific development road。East China shall take the lead to upgrade its independent innovation capability，positively cultivate a large batch of independent intellectual property rights，core technologies and famous brands and enhance the industry quality and sharpen the competitive edge；
also the region shall take the lead in realizing the optimization of the industrial structure and the transformation of the development mode；the region shall take the lead in scoring the substantive results in developing the recycling economy and practicing economy on energy consumption and water and land resources；and the region shall take the lead in perfecting the socialist market economic system and enhancing its level and quality of opening up to the outside world；it shall also take the lead in developing and reforming itself so as to set a good example and assist the mid-west regions for the rapid development and promote the mutual prosperity and common wealth。The Yangtze River Delta region，the Pearl River Delta region and Beijing-Tianjin-Hebei Degion shall gear up their development orientations for sustainable development according to their respective characteristics so as to promote the integration process of the region。