ThePaper.cn:

I am particularly concerned about the industrial production. How do you evaluate the performance of industrial production in October, and what were some positive signals? Thank you.

Fu Linghui:

Thank you for your question. This year, despite a complex and challenging international environment and rising competitive pressure in the domestic market, more proactive and effective macro policies have been vigorously implemented to provide greater support for the real economy. Our industrial production has pressed ahead against headwinds, with overall scale continuing to expand and structural adjustment moving toward higher quality. Based on October data, industrial production was basically stable, and progress toward higher-end, more intelligent, and greener development remained steady.

First, industrial production was generally stable. In October, the value added of industrial enterprises above designated size increased by 4.9% year-on-year, maintaining rapid growth and serving as an important force for stabilizing and promoting the economy. Across various industries value added rose in 29 of the 41 major industry categories, accounting for 70.7%. 50.2% of 623 major products maintained output growth. Cumulatively, from January to October, the value added of industrial enterprises above designated size rose 6.1% year-on-year, remaining generally stable compared with the January-September period.

Second, equipment manufacturing provided strong support. In October, the value added of large equipment manufacturing enterprises rose 8% year-on-year, contributing 2.9 percentage points to that of large industrial enterprises as a whole. The cumulative value added of large equipment manufacturing enterprises accounted for 36.1% of that of all large industrial enterprises, showing a prominent supporting role for industrial production. Within equipment manufacturing, value added in the automobile manufacturing industry and the railway, ship, aerospace, and other transport equipment manufacturing industries increased by 16.8% and 15.2%, respectively. Product output of civil steel ships and power generator sets rose by 21.4% and 16.9%, respectively.

Third, digitalization and intelligent transformation progressed steadily. The real economy has been more deeply integrated with digital technologies, and the high-end digital development of industries continues to improve. In October, the value added of large high-tech manufacturing and digital product manufacturing enterprises increased by 7.2% and 6.7%, respectively. Robots are entering various industries.AI is empowering new lifestyles. In October, the value added of intelligent in-vehicle equipment manufacturing rose 28.4%, and the output of industrial robots and integrated circuits increased by 17.9% and 17.7%, respectively.

Fourth, the green transition maintained good momentum. The production of new-energy products continued to expand. In October, output of lithium-ion batteries for vehicles and of new-energy vehicles rose by 30.4% and 19.3%, respectively. The green transition has driven significant growth, with rapid growth in products related to clean energy and green materials. In October, the output of wind turbine generators and bio-based chemical fibers increased by 23.6% and 16.6% respectively.

Fifth, corporate profits improved. Macro policies have begun to take effect and the development of a unified national market has advanced to further, support a faster recovery in profits for industrial enterprises above designated size. From January to September, the profits of industrial enterprises above designated size increased by 3.2% year-on-year, 2.3 percentage points faster compared with the January to August period. Among them, the profits of equipment manufacturing and high-tech manufacturing enterprises above designated size increased by 9.4% and 8.7%, respectively. This played an important role in the recovery of profits of industrial enterprises above designated size.

Overall, with coordinated macro policy taking effect, industrial production maintained steady growth, with transformation and upgrading being steadily promoted. However, it should also be noted that the external environment is complex and challenging, market demand is still insufficient, and some enterprises are under production and operational pressure. In the next stage, we should foster greater synergy between various policies to further expand domestic demand, optimize industrial structure, cultivate new drivers of growth, promote the concurrent improvement of output and quality of the industrial sector, upgrade and revive growth drivers, whilst continuously consolidating the foundation of the real economy. Thank you.