China National Radio:

Since the first quarter of this year, the industrial sector has been speeding up its recovery. How do you look at the current development of the industrial sector?

Shan Zhongde:

Thanks for your question. As I just mentioned, in the first quarter, the value added of China's industrial enterprises above designated size grew 6.1% year on year, marking the highest growth in the past eight quarters and signaling a solid start with rapid industrial development. To answer your question, I would like to further elaborate on three aspects.

First, major industrial provinces and cities, as well as key industrial sectors, have maintained stable growth. Among 31 provincial-level regions in China, 28 recorded year-on-year value-added industrial growth, with nine major industrial provinces such as Jiangsu, Shandong, Zhejiang, Fujian, and Hubei outpacing the national average. Among 50 major industrial cities, Shenzhen, Suzhou, Hefei, Nantong, Taizhou, and Dongguan registered double-digit growth. Major industrial provinces and cities played a crucial role in supporting industrial growth. Key industries are operating steadily and showing signs of improvement. Out of the 41 major industrial categories, 37 sectors, including electronics and automobiles, have seen year-on-year value-added growth, with the proportion of growing sectors expanding by 22 percentage points compared to last year. The equipment manufacturing sector has sustained rapid growth, with its value added growing by 7.6% year on year in the first quarter, contributing 2.4 percentage points to the growth of industrial enterprises above designated size and playing a crucial role in providing support and driving growth. The production of consumer goods has notably improved, with its value added growing by 4.2% year on year in the first quarter, reversing the downturn seen since April 2022. The raw materials manufacturing sector has maintained stable growth, with its value added growing by 7.5% year on year in the first quarter, and with industries such as non-ferrous metals and chemicals outpacing the overall industrial level.

Second, the high-tech manufacturing and emerging industries have maintained rapid growth. Specifically, high-tech manufacturing has shown a noticeable rebound, with its value growing by 7.5% year on year in the first quarter, 2.6 percentage points higher than the fourth quarter last year. Emerging industries have also demonstrated strong growth in key products. For instance, solar batteries grew by 20.1%, while polysilicon and monocrystalline silicon, which are relevant to the photovoltaic industry, saw their growth rates soaring above 50%. Additionally, the production and sales of new energy vehicles grew by 28.2% and 31.8%, respectively, in the first quarter. Furthermore, the MIIT and six other departments jointly issued Guidelines for Promoting the Innovative Development of Future Industries and Guidance for the Innovative Development of Humanoid Robotics, which are aimed at supporting enterprises in exploring new areas and accelerating the development of new quality productive forces. 

Third, there is a continuous accumulation of positive factors contributing to the recovery and growth of the industrial economy. The industrial economy has significant development potential, strong confidence, and robust momentum. The main manifestations include sustained market demand, with manufacturing investment increasing by 9.9% year on year in the first quarter, the export delivery value of industrial enterprises above designated size growing by 0.8% year on year, automobile sales increasing by 10.6% year on year, and consumers' spending on home appliances up 5.8% year on year. Particularly noteworthy is that policies promoting large-scale equipment upgrades in the industrial sector and consumer goods trade-in have accelerated release of market space. Business entities have confidence, as profits of industrial enterprises above designated size have been consistently growing, and private investment in the manufacturing sector has increased by 11.9% year on year. According to a survey conducted by our ministry in the first quarter among 36,000 key enterprises, 76% of them expect their output value to increase or remain stable in the second quarter. The driving force for development is abundant, with the number of industrial enterprises above designated size increasing by 19,000 to reach 501,000 by the end of February compared to the previous year. The efforts made by 178 national high-tech zones in leading and demonstrating high-quality development have achieved remarkable results, and 45 advanced manufacturing clusters have become important forces driving innovation and development in key industries and fields.

Next, we will focus on implementing the requirements of high-quality development throughout the entire process of new industrialization. We will strengthen the deep integration of scientific and technological innovation with industrial innovation, develop high-tech industries, achieve industrialization, cultivate and develop new quality productive forces, and accelerate the construction of a modern industrial system supported by advanced manufacturing. We will adhere to the principle of prioritizing quality and efficiency and solidly promote stable growth, transformation of growth model, increased momentum, and risk mitigation in order to consolidate and enhance the positive trend of the industrial economy's recovery.

I'll just add these details to the question. Thank you.