"Different from the situation of last year, investment-orientated products increased sharply in the first two months," said Lin Yuanfang, a senior official with the Department of Economic System Reform and Operation under MII.

He made the comments yesterday in Beijing at the 2003 China Electronic and Information Industry Trend Seminar held by his department and domestic research house CCID Consulting Co Ltd.

Lin revealed that the growth of computers and telecom equipment rose by 46 percent and 36 percent in the first two months of this year.

China produced 2.95 million computers in January and February and sold 2.97 million units, both up about 85 percent year-on-year.

The production of handsets reached 24.1 million units with about 92 percent of them sold, a rise of 86 percent and 72 percent respectively.

Last year, consumer-orientated products represented by color TV sets, were the major driving force.

According to statistics from the MII, the industrial output of the electronic and information industry reached 290 billion yuan (US$35 billion) in the first two months of 2003, a 31 percent year-on-year rise.

"Further good news is that the profits of businesses in the industry have also greatly improved," Lin pointed out.

They made 7.51 billion yuan (US$907 million) in profits during the period, up 60 percent.

Lin said State-owned enterprises recorded a 36 percent growth rate, compared with 31 percent from foreign-invested companies.

Computers and telecommunications equipment are also the biggest stimuli for China's rapid growth of foreign trade in January and February.

The exports of two categories of products both increased by more than 60 percent year-on-year and accounted for about 58 percent of the country's total exports of electronic and information technology products, while home appliances only contributed to 17.8 percent of growth in the period.

(China Daily March 27, 2003)