China Projects Continued Growth in Industrial Recovery, According to Industry Minister

China projects continued momentum in its industrial economy’s recovery as the fourth quarter of the year unfolds. The anticipated revival is expected to bolster the overall economic revival, per statements by a Chinese official.

In an interview with Xinhua, the Minister of Industry and Information Technology, Jin Zhuanglong, expressed confidence in the resilience and potential of China’s expansive industrial system, which spans a broad range of categories. He noted that measures aimed at stabilizing the economy are beginning to bear fruit, with an upward trajectory likely to be further reinforced in Q4.

Despite facing a multifaceted and challenging international environment, China’s industrial sector has demonstrated a steady resurgence throughout the year. This resurgence has been marked by enhanced production, an optimized structural makeup, and bolstered confidence within the sector.

The profit margins of key industrial corporations recorded a substantial increase of 11.9% year-over-year in September, marking the second consecutive month of double-digit growth. The first nine months of the year witnessed the value-added industrial output climb by 4%, with manufacturing seeing a 4.4% increase compared to the same period the previous year.

Between January and September, China’s 178 national high-tech industrial development zones collectively achieved an industrial output value of 23.5 trillion yuan (approximately 3.22 trillion U.S. dollars), showcasing the significant strides being made.

Jin underscored the Chinese government’s commitment to enhancing the industrial sector’s growth by catalyzing both supply and demand. Concrete action plans have been introduced to support key industries, including steel, electrical equipment, and electronic information manufacturing, all crucial for bolstering the industrial economy.

Tax and fee reductions amounting to over 1.15 trillion yuan were implemented in the year’s initial eight months, benefiting small and medium-sized enterprises (SMEs) significantly. As a result, SMEs exhibited positive operational signs, with a 9.4% increase in power consumption noted in September and a purchasing managers’ index for SMEs indicating an expansion for two successive months.

Moving forward, Jin declared that the ministry intends to ensure the effective implementation of growth-promoting measures, urging major industrial provinces to capitalize on their strengths to achieve set growth goals and to stimulate demand expansion

The ministry is also prioritizing the establishment of competitive advantages by initiating action plans for pivotal industries, with a focus on advancing digitalization and constructing cutting-edge information infrastructure, including 5G and gigabit optical networks. Concurrently, it’s forging ahead with plans to cultivate emerging sectors such as advanced computing, intelligent networked vehicles, and future-focused industries like 6G, humanoid robots, and the metaverse.

In alignment with the rejuvenation of the manufacturing industry, the ministry plans to eliminate outdated capacities, reduce excess production capabilities, and encourage sustainable development practices within the manufacturing realm, Jin emphasized. Through these multifaceted efforts, China signals its unwavering commitment to not only recuperate but also to advance its industrial sector’s position on the global stage.