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Growth of TV set production in China slows

(Xinhua)
Updated: 2009-02-27 21:25

China's television set production growth rate is expected to drop by two to four percent year-on-year in 2009 as a result of the global financial crisis.

A Chinese salesman promotes Changhong TV sets at a mall in Chengdu, southwestern China's Sichuan province, June 18, 2007. [Agencies]

But the industry will keep growing, just at a slower pace, according to a forecast by the Ministry of Industry and Information Technology (MIIT) released Friday.

Related readings:  Household appliance sector sees tough days ahead  Sichuan Changhong Q3 net profit down 48%  China's home appliance industry slows in 2008  China promotes home appliance subsidy program in rural areas

Figures from the MIIT show that more than 90 million TV sets were produced in China last year, up 6.5 percent from a year earlier. The increase is partly attributed to the Beijing Olympic Games and digital TV promotion.

TV set production began to shrink in the fourth quarter and fell year-on-year for the last three consecutive months of 2008.

"The situation for the industry is not optimistic. But thanks to policies to boost domestic demand, the market will maintain slow growth," an MIIT official said.

The ministry suggested the government should expand the coverage of subsidizes for purchase of electric appliances in rural areas. It should also give more funding to TV manufacturers to enable company restructuring and overseas acquisitions in an effort to introduce more technologies.