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SCIO briefing on national economic performance in October 2024

China.org.cn | December 6, 2024

Shou Xiaoli:

Let's continue. Due to the limited time, we will take two final questions.

The Poster News APP:

What do you think of the highlights of last month's industrial data and the overall situation of China's current industrial production? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, China's industrial production has witnessed rapid growth, marking an important highlight of economic performance. Judging from the situation in October, market demand has picked up under the impetus of policies. Business expectations have improved, industry has remained steady and grown rapidly, and the manufacturing industry has upgraded and developed. The equipment manufacturing industry and high-tech manufacturing industry have played an important supporting role. This was mainly reflected in the following aspects:

First, the industrial sector maintained steady and rapid growth. In October, the added value of industrial enterprises above designated size increased by 5.3% year on year, with a slight slowdown in the growth rate. The slowdown in October can mainly be attributed to the normalization of power production following a surge in September driven by extreme weather. In terms of the three major industrial categories, the growth rate of the production and supply of electricity, heat, gas and water declined, while the growth rates of the mining and manufacturing industries accelerated compared to the previous month. In terms of growth momentum, the market recovery in October led to an increase of 5.4% year on year in the added value of manufacturing above designated size, 0.2 percentage point higher than the previous month. At the same time, the pull of exports on production continued to be evident. In October, the delivery value of industrial exports above designated size increased by 3.7% year on year, 0.3 percentage point higher than the previous month.

Second, the industrial structure has been continuously improved. This is mainly reflected in the growth momentum of equipment manufacturing. Under the policy drive of industrial upgrading and the promotion of large-scale equipment renewal, production in the equipment manufacturing industry has maintained steady growth. In October, the added value of the equipment manufacturing industry increased by 6.6% year on year, continuing to outpace the overall industrial sector above designated size. Among them, the automobile manufacturing industry, the computer communications and other electronic equipment manufacturing industries grew by 6.2% and 10.5%, respectively. The development of the equipment manufacturing industry has not only supported rapid industrial growth but also contributed to improved industrial production efficiency.

Third, new industrial momentum is growing at an accelerated pace. Under the policy of high-quality industrial development, China's manufacturing industry is making a clear shift toward higher-end, intelligent and green development, with new growth drivers continuously accumulating. In October, the added value of high-tech manufacturing increased by 9.4% year on year. Among them, the output of integrated circuits and industrial robots increased by 11.8% and 33.4% year on year, respectively. The production of smart devices and green products continues to grow rapidly. In October, the added value of the unmanned aerial vehicle (UAV) manufacturing industry increased by 41.9%. Meanwhile, the production of NEVs and solar cells grew by 48.6% and 13.2%, respectively.

Fourth, industrial sentiment is on the rise. Against the background of the accelerated implementation of a raft of incremental policies and improved market demand, the connection between production and sales in industrial enterprises has been strengthened, leading to a recovery in industrial sentiment. In October, the production and sales rate of industrial enterprises above designated size increased by 1.3 percentage points compared to September. The Manufacturing Purchasing Managers' Index has risen back into the expansionary range. The Manufacturing Business Outlook Index increased by 2 percentage points compared to the previous month, showing a significant rise.

Overall, in October, industry experienced steady and relatively fast growth, high-quality development progressed steadily, and new growth drivers continued to emerge. However, it is also important to note that industrial enterprises are still facing challenges such as low market prices and difficulties in improving profitability. Next, it is important to effectively implement various policies supporting industrial development, focus on expanding domestic demand, consolidate and strengthen positive changes, and promote high-quality industrial development. Thank you.

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