Even though it is embroiled in an increasing number of trade disputes, China's light industry, responsible for a huge proportion of the country's exports, is expecting a 20-percent growth this year, according to the National Development and Reform Commission (NDRC).

The NDRC estimated that in the light industry sector - which covers the food, leather, plastics, ceramics, home appliances, furniture, hardware and paper making industries - the growth rate of exports would drop slightly and imports would continue to rise, without giving any specific figures.

The exports of light industry products have been on the rise in recent years, driving up China's trade surplus and triggering disputes with the country's trade partners in the US and Europe.

However, under the pressure of the rising yuan, which in the long run will have a negative influence on exporters' profit margins, industries are trying to cover future losses by increasing exports in the short-term and suspending imports, particularly of electronics and textiles.

An NDRC official said the sector lacked innovation in developing its own brand products and manufactured too many low value-added industrial products such as clothing and shoes. "These have been targeted by American and European protectionists," he said.

He said the light industry had consumed too much energy and needed to phase in more environmentally friendly production methods.

Last year the light industry's exports grew by 18.6 percent to reach US$228 billion and the imports grew by 12.5 percent to reach US$57.2 billion.

Enterprises in the light industry registered an output value of 5.9 trillion yuan (US$766 billion), up 23.2 percent, and profits of 265.1 billion yuan (US$34 billion), up 28.7 percent.

(Xinhua News Agency March 20, 2007)