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E-mail China.org.cn, December 3, 2024
Shou Xiaoli:
One last question, please.
The Beijing News:
We have noticed that the growth rate of industrial added value in September rebounded for the first time after four months of continuous decline. As such, Mr. Sheng, how do you assess the current performance of the industrial sector? What is your forecast for the trend in the upcoming period? Thank you.
Sheng Laiyun:
Thank you for your question. The industrial sector has been a bright spot in the economy this year. As you may have noted from the data, GDP grew by 4.8% in the first three quarters, while industrial output increased by 5.8%, surpassing GDP growth by 1 percentage point. The industrial sector has been crucial in supporting steady economic growth, contributing nearly 40% of GDP in the first three quarters. Why has the industrial sector performed so well and become a highlight of the economy?
First, the foundation of China’s industrial sector is solid. China is the only country that covers all of the more than 500 industrial sectors recognized by the United Nations. Our industrial system is highly resilient, with strong supporting capabilities and significant flexibility. Despite external shocks and internal pressures from structural adjustments, the industrial sector has continued to demonstrate strong competitiveness.
Second, the solid performance of the industrial sector is also attributable to the support from exports. In the first three quarters of this year, the export delivery value of the industrial sector increased by 4.1%, while total goods exports rose by 6.2%. These export products have not only showcased China’s processing capabilities but also underscored the vital role that exports play in supporting industrial development.
Third, the growth of new drivers and the development of new quality productive forces, as I mentioned earlier, have also provided crucial support. In recent years, particularly since the 18th CPC National Congress, we have intensified efforts to promote industrial restructuring and transformation, accelerating the development of new quality productive forces within the industrial sector. Our data indicates that the trend toward industrial upgrading, encompassing high-end, intelligent and green development, has become increasingly evident. Over the past few years, the added value of high-tech industries has increased by 3 to 4 percentage points faster than that of industrial enterprises above designated size on average. Additionally, industries related to the digital economy, as well as the new energy sectors in which we have competitive advantages, have also sustained rapid growth, providing strong momentum for the stable development of the industrial sector.
Another important reason, as I mentioned earlier, is the adoption of the policy to issue ultra-long special treasury bonds to implement major national strategies and build up security capacity in key areas and the policy to promote large-scale equipment upgrades and trade-ins for consumer goods. Earlier, I provided an overview of the policy effects, noting that the new energy vehicle (NEV) sector has benefited significantly. In the first three quarters, NEV production increased by 33.8% year on year. Related manufacturing sectors, such as metal smelting equipment and CNC forging and pressing equipment, have also sustained double-digit growth in output. These policy effects continue to be realized.
These four factors have contributed to the robust performance of the industrial economy this year, playing a crucial role in ensuring the stable operation of the overall economy. Looking ahead to the next stage, the industrial sector faces certain pressures, such as ongoing declines in industrial product prices, the need to improve corporate profits, the necessity to enhance industrial capacity utilization, and the trend for some traditional industries to accelerate adjustment, transformation and upgrading, all structural issues to be addressed through reform and transformation.
However, from a broader perspective, I believe the industrial sector will continue to sustain stable growth momentum. The supporting factors I mentioned earlier remain in place, and internal drivers, such as new growth engines and economic transformation, are expected to strengthen further. Especially in the fourth quarter, as the package of policies is implemented, China’s industrial economy is anticipated to maintain stable growth, making improvements in both quality and efficiency. Thank you.
Shou Xiaoli:
Thank you to Mr. Sheng and all the reporters for your participation. That concludes today's press conference. Goodbye.
Translated and edited by Yan Bin, Li Huiru, Mi Xingang, Wang Yanfang, Wang Yiming, Zhou Jing, Wang Xingguang, Wang Qian, Lin Liyao, Wang Wei, Chen Xinyan, Zhang Junmian, Liu Caiyi, Yuan Fang, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.
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