With the general turmoil caused by the global financial crisis, major industries in China have been suffering from shrinking world demand and dramatic falls in the price of raw materials.

Officials and experts believe Chinese industries should deal with the current problems through technological upgrades and industrial reforms.

CRI's Dan Dan has more.

Li Yizhong, China's minister of Industry and Information Technology, highlights the significant role that the automobile industry plays in the country's economic growth.

"The automobile sector has a long production chain and it is able to stimulate the growth of many related industries and sectors, for example the iron and steel, petrol chemical as well as some light industries. And it can also boost the consumption growth."

But statistics show the accumulated increasing rate of both car production and sales in the first 11 months this year had dropped to 8 percent and 9 percent respectively, the lowest since 1996.

Insiders say a shrinking world market demand is the main reason for the drop-off. Dong Yang is secretary-general of the China Association of Automobile Manufactures.

"China's export of automobiles has decreased a lot with the shrinking overseas demand. And our domestic sales have also dropped because of a lack of confidence in consumption."

With these problems, Minister Li Yizhong says the government is deliberating various measures. Automakers with environmentally friendly products and self-reliant technologies will be the biggest beneficiaries.

"We are discussing cutting the purchasing tax of low emission cars. Also, in the future, governmental departments will be encouraged to purchase domestic cars with Chinese intellectual property rights. And the reform of fuel oil prices will also boost the domestic auto market."

Meanwhile, for China's iron and steel industry, the minister says it has sufferred a lot as the world price of iron and steel has dropped dramatically this year.

Therefore, Li Yizhong points out that it's high time that the industry focus on making high quality goods, rather than expanding production scales.

He says the government will adopt policies to encourage exports of high-end steel products, and financially support iron and steel manufacturers to upgrade their technology.

"Next year we might provide a 15 billion yuan interest subsidy for industrial technology upgrades, and steel producers will be major recipients. We have listed some high-end steel products we will support next year."

Dan Dan,CRI news.