SCIO briefing on China's economic performance in 2020
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E-mail China.org.cn, January 20, 2021
China Daily:
My questions are for Mr. Ning. All three industries registered positive growth in 2020. What were the new situations and characteristics encountered during the year? Did industrial production return to a normal range in Q4? Thank you.
Ning Jizhe:
Your question is a request to provide a conclusion for 2020. With nationwide efforts, we not only saw overall positive growth but also coordinated recovery and development in all three industries. Viewing the year as a whole, the economy reopened in a steadily improving manner.
First, the position of agriculture as the foundation of the economy was further strengthened. Despite the COVID-19 epidemic and severe flooding, 2020 saw another bumper grain harvest. Hog production capacities recovered quickly and the output of poultry, eggs, and milk increased steadily. Agricultural production was better than expected and the value added of agriculture, forestry, animal husbandry, and fishery went up by 3% year on year a good performance compared with previous years. Growth was -3.2% for the first quarter, and 3.3, 3.9, and 4.1% for the second, third, and fourth quarters, respectively. Modern agriculture also performed well with several new super rice varieties developed, which have a yield of 1,000 kilograms per mu.
Second, industrial production stabilized and rallied. Industry as a whole, especially manufacturing, saw steady recovery quarter by quarter. The value added of industrial enterprises above designated size grew 2.8% year on year in 2020. The growth for the manufacturing sector was 3.4%, faster than the general growth. The growth for the first, second, third, and fourth quarter was -8.4, 4.4, 5.8, and 7.1%, respectively, and demonstrate that growth is already returning to normal. In particular, the role of pillar industries strengthened and the recovery of equipment manufacturing quickened. In 2020, value added to the equipment manufacturing sector grew 6.6% year on year, 3.8 percentage points higher than the general growth of industrial enterprises above designated size. The sector contributed 70.6% of the overall growth of industrial enterprises above designated size. It reported double-digit growth in both the third and fourth quarters. New industries and products thrived. In 2020, the value added of high-tech manufacturing enterprises above designated size expanded 7.1% from the previous year, 4.3 percentage points higher than the general growth of all industrial enterprises above designated size. Many products saw their production increase significantly. New products such as 3D printing equipment, smart watches, civilian UAVs, and IC wafers saw their production more than double in response to huge market demand.
Third, the service industry gradually recovered. The sharp decline at the beginning of the year was followed by a gradual recovery quarter by quarter. Major indicators improved continuously, new growth drivers were active, and market confidence was constantly enhanced. In 2020, the value added to the service industry grew 2.1% from the previous year. The gain for the first, second, third, and fourth quarters were -5.2, 1.9, 4.3, and 6.7%, respectively. The modern service industry, led by new technologies, showed relatively good growth. From January to November, business revenues for high-tech service enterprises, technology service enterprises, and enterprises of emerging service sectors of strategic importance increased 12, 11, and 8.6%, respectively. New business forms and models expanded quickly. The COVID-19 epidemic gave rise to new business models. The integration of physical and online stores picked up speed; new technologies such as 5G, AI, and Internet of Things were used widely, and online entertainment and commerce like short videos and live commerce saw trend-bucking growth. Working from home, online education, online healthcare and other new business models boomed, injecting new vitality into the economy and are bound to continue growing this year.
In December 2020, the value added to industrial enterprises above designated size increased 7.3% year on year, the highest growth of 2020. However, judging from the past two years, December was still within the normal range. In March 2019, for example, the figure was 8.5%.
The transformation of traditional industries also quickened to better meet demand, to further strengthen R&D and sales, and to promote the integration of the service sector through industry and agriculture. China's industries have broad prospects and are bound to unleash new potential. Thank you.
Hu Kaihong:
Today's press conference ends here. Thank you, Mr. Ning. Thank you, everyone.
Translated and edited by Zhang Liying, Zhou Jing, Xu Xiaoxuan, Li Huiru, Guo Yiming, Zhang Rui, Wang Yanfang, Wang Mengru, He Shan, Wang Yiming, Wang Qian, Yuan Fang, Wang Wei, Zhang Jiaqi, Yang Xi, Yan Xiaoqing, David Ball, and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.
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