Industrial production registered fast growth. In 2001, the total added value of the industrial sector was 4,260.7 billion yuan, up 8.9 percent over 2000. The added value of all State-owned industrial enterprises and non-State industrial enterprises with an annual sales revenue of over 5 million yuan was 2,695 billion yuan, up 9.9 percent. Of this total, the added value of State-owned and State-holding enterprises was 1,519.8 billion yuan, up 8.1 percent. The added value of collective enterprises was 314.1 billion yuan, up 7.2 percent; that of joint-stock enterprises 808.6 billion yuan, up 10.4 percent; and enterprises invested by foreign businesses or investors from Hong Kong, Macao and Taiwan 662.2 billion yuan, up 11.9 percent. The added value of heavy industry was 1,630.1 billion yuan, up 11.1 percent, while that of light industry was 1,064.9 billion yuan, up 8.6 percent. The product sales ratio of industrial enterprises stood at 97.7 percent.

The output of new and high-tech products maintained fast growth, and some sectors achieved new progress in eliminating outdated and cutting down excessive production capacities. In 2001, the output value of new industrial products increased 15.7 percent over 2000. The output of electronic and communications equipment and products, such as microwave communications equipment, optical communications equipment, mobile telephone sets and electronic computers, rose between 28.9-87.5 percent. Fast growth was also registered in the production of car, numerically controlled machine tool and other highly value-added, high-tech products. The production of coal and crude oil rose 10.9 percent and 1.3 percent respectively. The power generation grew 9 percent, and the production of steel and 10 kinds of nonferrous metals increased 19.8 percent and 10.5 percent respectively. In 2001, a total of 10,944 small coal mines were closed; 12 small steel mills were either shut down or suspended from production; small cement plants with 15.2 million tons of outdated production capacity were eliminated together with 2.63 million weight cases of outdated production capacity of small glassworks. Small thermal power generating units with a production capacity of 2.3 million kilowatts were either shut down or suspended from operation.

The construction industry registered rapid growth. In 2001, the added value of construction enterprises was 646.2 billion yuan, up 7.4 percent over 2000. The profits made by construction enterprises at and above grade four reached 22.6 billion yuan, up 17.6 percent; and their tax payments totaled 44.1 billion yuan, up 13.9 percent. Projects under construction numbered 830,000, of which 350,000 were constructed through a bidding system, accounting for 42.2 percent of the total. The total floor space of buildings under construction was 1,787.58 million square meters, an increase of 186.16 million square meters. Floor space of buildings completed in 2001 was 825.42 million square meters, an increase of 18.28 million square meters.

The reform of State-owned enterprises was further deepened. The establishment of modern corporate system was accelerated, and new headway was made in standardizing joint-stock enterprises. Efforts were focused on cultivating a number of large companies and enterprise groups with relatively strong market competitiveness, proprietary intellectual property rights and considerable advantages in international competition. Noticeable results were achieved in ownership transformation of small enterprises. A number of mines with resources exhausted and enterprises that were insolvent and had no chance of going into the black withdrew from the market through closedown and bankruptcy. State-owned industrial enterprises maintained a fairly high level of benefits, accomplishing a total of 233 billion yuan in profits in 2001. Overall, the coal industry made up deficits it suffered from for many years. The metallurgy and auto industries registered rapid growth in profits.