Macro economic regulation by the Chinese government to adjust industrial structure since 2005 has produced positive results, especially in overheated sectors, government statistics show.

Latest information from the State Administration for Industry and Commerce shows notable increases in the volume of registered capital of domestic businesses in agriculture, mining industries and service trades in 2005.

The registered capital in the agricultural and mining sectors was 219.8 billion yuan (about 27.1 billion U.S. dollars), up 5.6 percent, and that in the service trades, 10.3 trillion yuan (about 1.27 trillion U.S. dollars), up 5.9 percent. The manufacturing sector scored 5.88 trillion yuan (about 724.81 billion U.S. dollars) in register capital, up 1.5 percent.

In the past year, faster growth was seen primarily in modern service trades, with businesses ranging from leasing, technical services, geological prospecting, to management of public facilities.

The growth of the overheated real estate industry obviously slowed down despite a continuous rise in the volume of registered capital.

China promised to gradually open up sectors monopolized by the state such as banking, telecommunications and insurance, when it joined the World Trade Organization (WTO) in 2001.

State-owned enterprises have stepped up strategic reorganization and upgrading in the sectors of banking, telecommunications and insurance, and increased investments in basic sectors by gradually moving out from the trading and catering business where competition is intense. This is illustrated by the fact that there were steady increases in registered capital of state-owned enterprises in the agriculture and industry sectors, but a decrease in the service trades.

Source: Xinhua