The Paper:

The problem of poor connection between industrial production and sales still exists, and enterprises in some sectors face difficulties. What measures will the MIIT take to keep the performance of industry stable? Thank you.

Tao Qing:

Thank you for your question. Unexpected factors at home and abroad have taken a short-term toll on industry since March, but industry has gradually recovered since May with the implementation of policies and measures to stabilize the economy. From the perspective of sectors, the recovery featured several characteristics. First, the production of most sectors has rebounded. Among the 41 major sectors, the value-added of 33 registered positive growth in the first half of the year, of which nine achieved double-digit growth. In May and June, the value-added of 33 and 27 sectors grew faster than the previous month. Second, critical industrial and supply chains recovered at a more rapid pace. After a brief decline in April, the value-added of equipment manufacturing, which was hit hard by the epidemic, returned to positive growth in May, and the growth rate reached 9.2% in June. In particular, the recovery of the industrial and supply chains of the automobile industry was more prominent. With a substantial increase of 16.2% in June, the value-added of automobile manufacturing reversed the previous month's decline of 7%, which effectively drove the overall industrial growth. Third, high-tech manufacturing continued its growth momentum. In the first half of the year, the value-added of high-tech manufacturing increased by 9.6% year on year, significantly higher than that of overall industry. In particular, the value-added of electronics manufacturing increased by 10.2%, maintaining double-digit growth, and the trend of transformation and upgrading remained unchanged. Fourth, some energy and raw material sectors maintained rapid growth. We have redoubled our efforts to keep supply and price stable. In the first half of the year, the value-added of the mining industry increased by 9.5% year on year, of which the growth rate of the coal industry exceeded double digits, and the output of potash fertilizer increased by 9.4%. Fifth, we have taken strong measures to effectively ensure the supply of products essential to people's daily life. In the first half of the year, the value-added of the alcohol, beverages, and refined tea sector increased by 8.4% year on year. The production of food, agricultural and sideline products, and other industries grew steadily, and the supply of daily necessities was adequately guaranteed.

At the same time, we must see that the operation of enterprises in different industries varies due to differences in the industrial development cycle and the epidemic's impact. Some mid- and downstream sectors face pressure from high and fluctuating prices of bulk raw materials and low market demand. The recovery of some consumer goods sectors is lagging. SMEs are still facing difficulties in production and operation. In the next step, we will focus on enterprises and industries with problems, have clear priorities, and take category-based measures. We will facilitate the smooth circulation of industrial and supply chains, move faster to ensure stable production and reach output targets, and step up efforts to ensure the supply and price of energy and raw materials remain stable. We will boost industrial investment and consumption demands, implement targeted policies to ease the difficulties of enterprises, continuously enhance the balance and stability of the recovery and development of industry, and continue to consolidate the foundation for industry's steady recovery. Thank you!