Speakers:
Mr. Shan Zhongde, vice minister of industry and information technology
Mr. Zhao Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology (MIIT)
Ms. Tao Qing, spokesperson for MIIT and director general of the Operation Monitoring and Coordination Bureau of MIIT
Chairperson:
Ms. Xing Huina, deputy director general for the Press Bureau of the State Council Information Office (SCIO) and spokesperson for SCIO
Date:
April 18, 2024
Xing Huina:
Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). We have invited Mr. Shan Zhongde, vice minister of industry and information technology, to brief you on China's industry and information technology sector's development in the first quarter of 2024, and to take your questions. Also present today are Mr. Zhao Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology (MIIT) and Ms. Tao Qing, spokesperson for MIIT and director general of the Operation Monitoring and Coordination Bureau of MIIT.
Now, I'll give the floor to Mr. Shan for his briefing.
Shan Zhongde:
Ladies and gentlemen, greetings to you all. I'd like to express my gratitude to you for your long-term interest in and support for the development of China's industry and information technology. First, I'll give you an overall introduction in this sector.
Under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, the MIIT has thoroughly implemented the decisions and arrangements of the CPC Central Committee and the State Council, and adhered to the general principle of pursuing progress while ensuring stability. We have actively cooperated with local governments and various departments to front-load efforts to ensure effective implementation, vigorously promoting new industrialization. In the first quarter of 2024, a notable overall pattern emerged: the industrial economy maintained a rapid growth, yielding positive results in high-quality development and achieving a good start overall. This was specifically evidenced in four areas: stable and favorable performance in the industrial economy, accelerated progress in new industrialization, stable growth in information and communication, and ongoing improvement of the business environment.
First, stable and favorable performance in industrial economy was primarily demonstrated as follows. Industrial production secured rapid growth. In the first quarter, the value added of China's industrial enterprises above designated size grew by 6.1% year on year, an increase of 1.5 percentage points compared to 2023. Key industries such as electronics, chemicals and automobiles made notable contributions to this growth, with prominent industrial provinces and cities playing a major role. The industrial enterprises' profits continue to increase. In the first two months of this year, the profits of the industrial enterprises above designated size increased by 10.2% year on year, marking continuous growth since August of last year. Market expectations are positive. In the first quarter, industrial investment increased by 13.4%, with the number of industrial enterprises above designated size continuing to rise. In March, the manufacturing purchasing manager's index (PMI) bounced back to the expansion zone, reaching 50.8%. In the first quarter, the value added of small and medium-sized industrial enterprises above designated size grew by 7.4% year on year. It can be said that multiple factors drove a continuous improvement in the industrial economy.
Second, accelerated progress in new industrialization. Consistently taking high-quality development as a top priority, we strive to fulfill the crucial task of achieving new industrialization and vigorously promoting the initiative. We lead industrial innovation through scientific and technological innovation, actively fostering and developing new quality productive forces, constructing a modern industrial system underpinned by advanced manufacturing and fortifying efforts to make the manufacturing sector higher-end, smarter and more eco-friendly. It can be said that new breakthroughs were secured in high-end development. We have coordinated the implementation of projects launched to achieve breakthroughs in core technologies in key fields, industrial foundation reengineering projects as well as research projects focused on major technologies and equipment. Our efforts have brought about new streams of innovation. Notably, an initial prototype for a 300-megawatt F-class heavy-duty gas turbine has been assembled. We have made solid strides in delivering in the initiative of pursuing high-quality development of key manufacturing chains and to build up advanced manufacturing clusters. In the first quarter, the value added of high-tech manufacturing increased by 7.5% year on year. The intelligence level has achieved new improvements. Expedited efforts have been made to advance the four deep integrations between digital technology and manufacturing, digital economy and real economy, information technology and industrialization as well as artificial intelligence (AI) and manufacturing. Currently, 421 national demonstration factories for intelligent manufacturing have been established. The central and local governments jointly introduced a series of polices to support upgrading enterprises with digital and smart technologies. Nearly 10,000 digital workshops and smart factories have been built nationwide. Green development has also made progress. Consistent efforts have been made to drive the green and low-carbon transformation in the industrial structure, with application scenarios for hydrogen energy and new energy storage ways among others, seeing constant expansion. In the first quarter, the market share of new energy vehicles exceeded 31% and energy consumption per unit of industrial added value created by enterprises above designated size in traditional sectors, such as steel and non-ferrous metals, continued to decline.
Third, stable growth in information and communication. In the first quarter, telecommunication businesses' revenue grew by 4.5% year on year. The infrastructure played an ever-growing supporting role. Steady progress was made in the construction of the "dual-gigabit" internet, which features a 5G network and a gigabit optical network. Now, a cumulative total of 3.647 million 5G base stations have been established, 5G penetration rate has exceeded 60% and 207 cities have achieved the standards of gigabit cities, guiding the construction of a hierarchical computing power infrastructure. The empowerment effects of information technologies have continued to grow. 5G applications have been widely adopted in areas such as manufacturing quality inspection and mining production. Applications of the industrial internet have been integrated into 49 major economic categories, forming more than 200 industrial internet demonstration and application programs. Information and communication have played a big role in improving people's well-being. Continued efforts have been made in the governance of apps, strongly and effectively protecting the rights and interests of users. The promotion of demonstration cases for elderly-friendly internet applications have also been further accelerated.
Fourth, our business environment is constantly improving. We are striving to foster a world-class business environment that is market-oriented, law-based, and internationalized, with a focus on four key areas: enhancing services to enterprises, reinforcing the principal role of enterprises in innovation, facilitating closer collaboration between industry and finance, and promoting open development. In terms of enhancing services to enterprises, we have launched the "Together for the Benefit of Enterprises" initiative aimed at small and medium-sized enterprises (SMEs), and micro-businesses. We have also launched special campaign to settle overdue payments owed to enterprises and established a robust mechanism to address this problem in the long term. Furthermore, we have implemented various policies to support enterprises and listed tasks for reducing their burden this year, focusing on solving the pressing difficulties and problems that concern them most. In terms of reinforcing the principal role of enterprises in innovation, we have been nurturing and expanding high-tech companies and innovative SMEs that use special and sophisticated technologies to produce novel and unique products. We have also been supporting enterprises of all sizes in pursuing development through collaboration with each other in order to spark innovation and boost growth momentum. In terms of facilitating collaboration between industry and finance, we have leveraged the role of the national industry-finance cooperation platform that has helped companies to secure an accumulative finance of over 780 billion yuan. In terms of strengthening open development, we have thoroughly implemented policy measures to remove market access restrictions on foreign investment in manufacturing, further opened up value-added telecom services, and deepened mutually beneficial cooperation with companies worldwide.
Going forward, we will continue to be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implement the decisions and arrangements made by the CPC Central Committee and the State Council, and fortify our confidence for development, innovation, and opening up. We are committed to opening up the manufacturing sector and promoting open cooperation for a shared future. We will strengthen the integration of scientific and technological innovation with industrial innovation and accelerate the integration of digital technologies with the real economy. We will do our best to stabilize industrial growth, accelerate the development of new quality productive forces, and promote the development of generic technology platforms and pilot-scale testing platforms. We will leverage information technology, digital technologies, smart technologies, and green technologies to advance new industrialization, move the manufacturing sector toward higher-end, smarter, and greener production, continuously consolidate the momentum for recovery and growth of the industrial sector, foster new driving forces for development, and provide solid support for high-quality and sustainable development of the industrial sector.
That concludes my overview of the first quarter. Now, my colleagues and I are ready to answer your questions.
Xing Huina:
Thank you, Mr. Shan. We now move to the Q&A session. Please identify the media organization you represent before raising your questions.
