Speakers:
Mr. Zhao Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology (MIIT)
Ms. Tao Qing, MIIT spokesperson and director general of the Operation Monitoring and Coordination Bureau of the MIIT
Chairperson:
Ms. Xing Huina, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO
Date:
Oct. 20, 2023
Xing Huina:
Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Zhao Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology (MIIT), and Ms. Tao Qing, MIIT spokesperson and director general of the Operation Monitoring and Coordination Bureau of the MIIT, to introduce the development of industry and information technology in the first three quarters of 2023 and answer your questions.
Now, I'll give the floor to Mr. Zhao for his introduction.
Zhao Zhiguo:
Ladies and gentlemen, friends from the press, good afternoon. Thank you for your long-term interest in and support for the industry and information technology sector. Now, I will brief you on the sector's development in the first three quarters.
Since the beginning of the year, the MIIT has adhered to the guiding principles of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implemented the guiding principles of the 20th National Congress of the Communist Party of China (CPC), and earnestly put into practice the decisions and deployments made at the Central Economic Work Conference. Adhering to the general principle of pursuing progress while ensuring stability, all regions and departments united and collaborated, working together toward the common goal of continuously advancing quality and promoting reasonable growth within the industrial economy. In the first three quarters, industrial and informational development remained stable, with ongoing optimization of the industrial structure. New momentum and advantages were continually gathered and strengthened, consistently releasing energy for innovative growth. Positive outcomes were achieved in high-quality development.
First, the industrial economy is on a positive recovery trajectory. By implementing a series of growth-stabilization policies issued by the State Council, we have steadily fortified the momentum of industrial economic recovery. Major economic indicators show the following characteristics: Stable growth in industrial production. In the first three quarters, the added value of China's industrial enterprises above designated size increased by 4% year on year, with the growth rate accelerating by 0.2 percentage points compared to the first half of the year. The proportion of manufacturing added value to GDP remained essentially stable, with manufacturing investment continuously growing, and the growth rate gradually accelerating since July. Corporate profits have been recovering at a faster pace, with industrial enterprises above designated size seeing a 17.2% year-on-year increase in profits in August, and both operating income and profits turning positive.
Second, the manufacturing industry has made solid strides toward high-quality development. We have actively encouraged the fast-paced development of advanced manufacturing. In the first three quarters, investment in high-tech manufacturing grew by 11.3% year on year, with the growth rate surpassing general manufacturing investment by 5.1 percentage points. We accelerated the development of new products, industries and business models, leading to rapid growth in sectors like new energy vehicles, photovoltaic products and aerospace equipment. The three major indicators of China's shipbuilding industry, namely shipbuilding output, new orders and holding orders, continued to lead the way globally. The digital transformation process has accelerated, leading to the expansion and elevation of smart factory construction, with nearly 10,000 digital workshops and smart factories being established. New scenarios, solutions and models for intelligent manufacturing have been developed. Significant achievements have been made in improving industrial quality and efficiency.
Third, the information and communication sector continued to grow steadily. We have consistently leveraged and consolidated our strengths in this sector, supporting high-quality economic and social development. In the first three quarters, telecommunications business revenue grew by 6.8% year on year, and total business volume increased by 16.5% year on year. Network infrastructure has been continuously strengthened, with a total of 3.189 million 5G base stations built as of the end of September, and gigabit broadband users reaching 145 million. Network service capabilities continued to improve, with total computing power reaching 197 EFLOPS, and mobile network IPv6 traffic accounting for 58.4%. Innovations and integrated applications have deepened significantly, with 5G applications integrated into 67 major economic categories. Nationwide, there are more than 7,000 "5G + Industrial Internet" projects, and the number of mobile IoT terminals has reached 2.22 billion. The level of benefits to the public has steadily improved, with 1,924 commonly used websites and apps, and over 140 million smartphones and smart TVs, being updated to make them senior-friendly.
Fourth, small and medium-sized enterprises (SMEs) achieved remarkable progress. We strengthened policy support by implementing measures to ensure the stable growth of micro, small, and medium enterprises, adjust their structure, and enhance their capacity. In the first three quarters, many key indicators for the economic operation of SMEs recovered and improved. We have strengthened service support. We carried out targeted programs for SMEs, and also named a specific month to provide intense services for them. Digital transformation was enhanced. We selected and announced the first 30 pilot cities pioneering the digital transformation of SMEs so as to deeply integrate the digital economy into the real economy. We put a focus on fostering excellent enterprises and now have a total of 103,000 SMEs that use special and sophisticated technologies to produce novel and unique products, 12,000 "little giant" SMEs, and 200 featured industrial clusters. These SMEs have contributed their part to shoring up weak links in the industrial and supply chains .
From an overall perspective, despite facing difficulties, such as insufficient demand, the fundamentals sustaining the long-term growth of China's industrial economy have remained solid. The successful convening of the national meeting on promoting new industrialization has injected strong impetus for the development of the industrial economy. Hence, we are confident of its further recovery and progress. Going forward, the MIIT will continue to follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implement the guiding principles of the 20th CPC National Congress, and act on the arrangements made at the national meeting on promoting new industrialization. We will stay confident in pursuing development, expand demand, strengthen the driving force, and hold the bottom line, making every effort to ensure the stable growth of industries so as to provide strong support for overall economic recovery.
That's my introduction. Next, my colleagues and I would like to answer your questions.
