China's industrial sector rebounds in Q2
The added value of industrial enterprises above the designated size in China rose 4.4% year on year in the second quarter after a contraction in the first three months, as the country continues to restore economic activity while bringing COVID-19 under control.
By Cui Can
In the second quarter of 2020, the added value of industrial enterprises above the designated size in China rose by 4.4% year on year, rebounding from a contraction in the first three months of the year amid the COVID-19 pandemic, according to the Ministry of Industry and Information Technology (MIIT).
Xin Guobin, vice minister of industry and information technology, said at a press conference held by the State Council Information Office on Thursday that the added value of industrial enterprises above the designated size dropped 1.3% year on year in the first six months, narrowing by 7.1 percentage points from the drop in the first quarter. He said April, May, and June registered year-on-year growths of 3.9%, 4.4%, and 4.8% respectively, marking increases in three consecutive months.
New industries and business types have emerged against the trend, the vice minister said. The added value of high-tech manufacturing industry grew 4.5% year on year in the first six months, 5.8 percentage points higher than the growth of industrial enterprises above the designated size. The application of information technologies such as artificial intelligence and the Internet of Things has accelerated, and new progress has been made in the digital transformation of traditional industries. The revenue from software and information technology services increased 6.7% year on year.
A series of policies and measures have been taken to further support small and medium-sized enterprises (SMEs) to counter the impact brought by COVID-19. According to data from the National Bureau of Statistics and the MIIT, major economic indicators of SMEs reported positive growths in the second quarter, with their revenue rising by 8.6% and 3% in April and May respectively, and total profits up 14.9% and 14.1% respectively.
The growth of China's information and telecommunications sector remained stable in the first half of the year, according to Xin. Online shopping, remote education, online medical service, and other consumer demands expanded rapidly amid the COVID-19 outbreak. The construction of new infrastructure such as 5G has accelerated, and internet applications have played an essential role in boosting economic recovery, Xin said.
Looking to the second half of the year, Xin said China continues to face challenges and uncertainties, such as the spread of the coronavirus overseas, downward pressure on global economy, and heavy floods in the country's southern areas.
However, with measures taken to reduce costs for enterprises and offer them more financial support, the vice minister said China has full confidence and capability to keep the industrial sector stable overall and on a positive trend.
