China's telecom equipment sector encountered a ''cold spell'' in the first quarter of 2010 due to a decline of output, slow growth of sales value and export delivery value, according to data released by the Ministry of Industry and Information Technology (MIIT) Wednesday.
MIIT's announcement showed that China's electronic information industry with enterprises that had sales values worth more than 200 million yuan gained an export delivery value of 1.29 trillion yuan ($188.9 billion), which grew 33.3 percent year-on-year in the first quarter.
But two sub-sectors of the electronic information industry, the industry of stored program control (SPC) exchange, and the mobile telecom base station, which also belong to the telecom equipment sector, saw an output decline of 30.1 percent and 41.3 percent respectively.
In the first quarter, the telecom equipment manufacturing sector experienced a slow growth of only 10.7 percent in sales value, while other manufacturing sectors saw a growth of more than 30 percent.
As for the export delivery value, the telecom equipment manufacturing sector only grew 2.4 percent, while others surged more than 20 percent.
There are two possible reasons to explain the slow growth in the telecom equipment sector, said MIIT.
Telecom operators shrunk their investment in networks and India has adopted a new purchasing plan to impose restrictions on China’s exports, which seriously affected China’s exports, said MIIT. |
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