China's industrial output is expected to post an annual 11-percent rise this year, buoyed by the government's stimulus packages, Minister of Industry and Information Technology (MIIT) Li Yizhong said Monday.

Li said at a two-day conference starting Monday in Beijing that industrial output development would ensure the 8-percent growth of the country's GDP the government had projected for this year.

The industrial output moved into double-digit growth in June, up from the 3.8 percent in the first two months of the year. The first 11 months saw the rise at 10.3 percent from a year ago, he said.

The stimulus packages the government adopted to combat the global financial crisis had eased production difficulties for enterprises and reversed the decline of industrial growth, he said.

"The recovery base has been gradually consolidated and the macro economic policies will still be in place to boost the economy next year," Li said.

He forecast an 11-percent growth for industrial output in 2010.

"The growth pace is necessary, achievable and appropriate. We will not set the target too high", he added.

However, he warned against "blind optimism" as the industrial recovery was mainly supported by government investment and bank loans rather than private investment, which posed challenges, he said.

Also at the meeting, Vice Premier Zhang Dejiang noted industrial rebalance would top next year's work, and a stable and relatively fast industrial development must be maintained.

Both Zhang and Li said excess industrial capacity was still a problem for the country's economy especially when global demand was yet to recover from the financial crisis, he said.

The authority should resolutely curb excessive capacity in some sectors and redundant construction. Obsolete capacity should be phased out, said Zhang.

Li Yizhong said the government would push forward mergers and acquisitions in the industrial sectors to increase industrial concentration, he said, adding the government would roll out guidance plan over merger and acquisitions for steel, non-ferrous metal, construction material, auto and shipbuilding industries.

The government will lift the threshold of market entry for some sectors including steel, cement, flat glasses and coal chemical industries to improve energy consumption efficiency and environmental protection.

The MIIT will work with other relevant authorities to intensify management over projects approval and reject expansion projects of docks, slipways from existing shipbuilding enterprises, and new capacity building and expansion projects in aluminum electrolysis and steel sectors in three years.

Zhang Dejiang also said more efforts should be made to enhance innovation capabilities and improve the added value and core competitiveness of the products.