Economic Daily:

As we know, the monthly data of value added of industrial enterprises above the designated size fluctuated markedly last year. How to evaluate the industrial performance for the whole year? Will the trend of recovery continue this year? Thanks.

Tian Yulong:

Thanks for your questions. As I said in my opening remarks, the industrial economy in 2022 faced a relatively severe and complex environment both at home and abroad, and was under great pressure to ensure steady growth.

Over the past year, under the support from all regions and departments, the MIIT put steady growth as its top priority, adopted a series of measures to achieve recovery of the industrial economy in a short time, and maintained sound momentum, demonstrating the "ballast" role of the industrial economy in the macroeconomic performance, as well as contributing China's share in stabilizing the global industrial and supply chains and in promoting the recovery of world economy. 

Overall, the value added of industrial enterprises above the designated size grew 3.6% year on year in 2022. The first quarter got off to a good start with a sound momentum, while it fell sharply in April and began to stabilize and rally again in May. This fluctuation was relatively large. In the fourth quarter, the downward pressure increased because of the pandemic. But on the whole, the positive trend of stability has remained unchanged. In terms of industries, key industries generally performed stably. In particular, the equipment manufacturing industry registered fast growth. In 2022, the value added of this sector grew 5.6%, contributing 50.3% to the overall industrial growth. Among them, a representative sector, including electric machinery as well as instruments and meters, increased by 11.9% and 4.6%, respectively. The automobile industrial and supply chains were fully restored, with annual production and sales rising by 3.4% and 2.1%, respectively, in 2022. Generally, the driving power of the equipment manufacturing sector was very strong. Raw material for manufacturing was growing despite of the pressure. In 2022, the value added of the sector rose 1.6% year on year, with the first three quarters running at a low level, and the growth accelerated since September. The consumer goods manufacturing gradually recovered. In 2022, the value added of the sector grew 0.6% year on year. Daily necessities industry such as food, agricultural and non-staple food, wine, beverage, and refined tea maintained certain growth.

In terms of key products, products of new energy and new drivers of growth grew rapidly, and daily necessities rose steadily. The production and sales of new energy vehicles reached 7.058 million and 6.887 million, up 96.9% and 93.4% year on year, respectively, while the output of charging piles and solar panels soared by 80.3% and 47.8% year on year, respectively. New material products grew at a high level - the production of polysilicon and monocrystalline silicon, for example, grew rapidly, reaching 64.4% and 51.8%. High-tech products also posted rapid growth, with the output of mobile communication base station equipment as well as the industrial control computers and systems increasing by 16.3% and15.0% respectively. We have guided enterprises to focus on the needs of the people and increased the production and processing of related products to effectively meet consumer needs. The output of flash frozen food and dairy products rose 3.3% and 2.0%, respectively, and the woolen fabrics up 4.7%.

In terms of regions, most provinces saw their industrial economy recovering steadily. Last year, 24 of the 31 provinces, autonomous regions and municipalities directly under the central government logged growth to value added to industry. Among them, major industrial provinces such as Jiangsu, Shandong, Zhejiang, Henan, Fujian, Sichuan, Hubei, Hunan, and Hebei posted higher growth rates than the national level. The growth rate of major economic indicators in the central and western regions took the leading position. Last year, the value added of industry of these regions increased by 6.8% and 6.2%, respectively; while the eastern region raised 3.0% year on year, showing steady signs of recovery. 

In 2023, the external environment remains complex, and the development of the industrial sector is still under great pressure. However, in general, the growth trend and pattern remain unchanged, and the economic fundamentals that will sustain long-term growth have been stabilized and consolidated. We believe that with the effective release of the vitality of market entities, the potential of consumer consumption, and the impetus for industrial upgrading, the steady recovery of the industrial economy will keep unchanged so as to provide stronger support for the macroeconomy.

That's all for me. Thanks!