Value-added industrial output last month rose 11 per cent year on year to 185 billion yuan (about 22.29 billion u.S Dollars), up 0.4 per cent over october, the state statistical bureau (ssb) was quoted by 'china daily'.

The average industrial growth rate for the first 11 months of 1998 was 8.5 per cent, the report said noting the figure was lower than required to attain this year's economic growth rate target of eight per cent.

The current situation suggests the momentum will be maintained in december and the annual rate for industrial growth will finish near nine per cent, the official newspaper quoted a government official as saying.

Chinese officials and economists had projected that the sector should grow between nine per cent and 11 per cent to ensure fulfilment of the governments annual economic growthtarget.

The industrial growth in november was mainly powered by heavy industrial products in wake of the government's promise to spend 200 billion yuan (over 24 billion u.S Dollars) this year and next year to boost infrastructure investment.

The ssb said last month's heavy industrial output rose 11 per cent year on year, up 0.7 percentage points over that recorded in october.

China-industry two last

Production of steel products in november soared by 19 per cent, compared with 15.2 per cent last year, while cement surged 15.1 per cent against 14.9 per cent in october.

Output of state-owned enterprises grew by 7.2 per cent in november, 1.2 percentage points faster than in october. But the corresponding rate for foreign-funded enterprises fell by 1.6 per cent from october to 13.5 per cent in november.

Though industrial growth is accelerating, efficiency in the key sector is deteriorating, officials warned.

Profits of state-owned enterprises during the january- october period has plummeted59.5 per cent to 23.5 billion yuan (2.83 billion u.S. Dollars) when compared with the corresponding period of last year.

China has repeatedly said it would fulfil its eight per cent economic growth target set for this year, although an increasing number of economists said that was difficult to achieve.

Chinas gross domestic product rose 7.6 per cent in the third quarter compared with the same period a year. The economy's growth rate was up from the first quarter's 7.2 per cent increase on the year and the second quarter's 6.8 per cent rise.