Xing Huina:

The floor is now open for questions. Please identify the media outlet you represent before asking questions.

CCTV:

The CPC Central Committee and the State Council have attached great importance to the real economy, especially the development of the industrial economy. In the first three quarters, industrial production saw a steady recovery, and enterprises gained profits at a faster pace. How do you evaluate the development of the industrial economy over the first three quarters of this year? Thank you.

Zhao Zhiguo:

I will answer your question; thank you for asking. Since the beginning of this year, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, we have upheld the general principle of pursuing progress while ensuring stability and taken concrete measures to implement the State Council's policies to ensure stable growth. We have concentrated on 10 major industries and collaborated with relevant departments to formulate and implement working plans on ensuring stable growth from 2023 to 2024. These industries included the steel and non-ferrous industries, which are of a large scale and are strong driving forces to growth. With the concerted efforts of all areas and all departments, industrial production has witnessed stable growth. In the first three quarters, the value-added of industries above designated size grew by 4% year on year, 0.2 percentage point faster than the growth rate in the first half of the year.

An overall stable performance was maintained in major industries, and the industrial structure has continued to be optimized. In the first three quarters, 27 of 41 major industrial categories retained a year-on-year growth in their added value. Among them, the equipment manufacturing industry saw faster growth. In the first three quarters, its value-added registered a rise of 6% year on year, 2 percentage points higher than the industrial growth in general. It contributed to an increase of 1.9 percentage points in growth for industries above designated size. In September, in particular, four sectors, including electrical machinery, chemical industry, electronics, and automobiles, contributed to nearly 60% of the industrial growth in general. Raw material manufacturing also accelerated its output. In the first three quarters, its added value rose by 6.5% year on year, 1.3 percentage points faster than the growth rate in the first half of the year. Of all raw material manufacturing sectors, chemical and non-ferrous industries enjoyed improvements in their needs and registered faster growth.

A higher growth rate was kept in the output of products related to new driving forces. In the first three quarters, the output of solar cells and charging stations rose by 63.2% and 34.2%, respectively. The output of electronics has also increased steadily, with a continuous rise in the output of smartphones since the beginning of the third quarter. According to statistics from the China Association of Automobile Manufacturers, in the first three quarters, the output and sales of new energy vehicles reached 6.313 million and 6.278 million, a year-on-year rise of 33.7% and 37.5%, respectively.

The industrial sector has shown a steady recovery in most of China's provinces and equivalent administrative units. In the first three quarters, industrial added value increased year on year in 28 out of the 31 provincial-level regions. Twenty provinces saw faster growth or a reduced decrease than in the H1. Growth rates rose in eight out of the top ten provinces that have notable industry output compared to those in the H1. Six provinces saw a higher growth rate than the national average, namely Jiangsu, Shandong, Sichuan, Hebei, Hubei, and Zhejiang.

Positive factors have been gradually cumulated. In the first three quarters, investment in the manufacturing sector continued to increase. Investment in high-tech manufacturing, in particular, grew 11.3% year on year, maintaining double-digit growth for 36 consecutive months. Meanwhile, the decrease in exports narrowed in the industrial sector. In September, the manufacturing purchasing managers' index (PMI) bounced back to the expansion zone. The producer price index (PPI) edged up on a monthly basis for two consecutive months. Enterprises made month-on-month progress. The decline in profits of industrial enterprises above designated size lessened for six consecutive months. The supply and demand of industrial products gradually improved. Industrial enterprise expectations and confidence strengthened. 

Next, we will follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and fully implement the guiding principles from the 20th CPC National Congress. We will strive to accomplish tasks arranged at the national meeting on promoting new industrialization and pursue high-quality development throughout the whole process. Seizing the opportunities for economic recovery and industrial transformation, we will step up efforts to increase demand, strengthen growth drivers, and safeguard the bottom line so as to ensure stable growth in the industrial sector. Thank you.