Elephant News:

We would like to ask about industrial production. How did industrial enterprises above designated size perform in 2025? What were the main characteristics? In addition, how do you assess the outlook for China's industrial production in 2026? Thank you.

Kang Yi:

I'd like to invite Mr. Fu Linghui to answer these questions.

Fu Linghui:

I'll answer your questions about industrial production. Industry is an important component of the real economy and a ballast for stable economic operations. In 2025, industrial production was characterized by rapid growth, structural optimization and new momentum, playing an important supporting role in stabilizing economic operations. The main characteristics are as follows:

First, industrial strength expanded. In 2025, China's industrial value added reached 41.7 trillion yuan, an increase of 5.8% over the previous year, with the growth rate accelerating by 0.3 percentage point. Its contribution to economic growth reached 35%, an increase of 1.8 percentage points over the previous year. As the mainstay of the industrial economy, manufacturing output continued to expand. In 2025, manufacturing value added reached 34.7 trillion yuan, an increase of 6.1% over the previous year, with its share of GDP remaining stable at around 25%. China's manufacturing sector is expected to have remained the world's largest for 16 consecutive years, with the advantages of a complete industrial system becoming more apparent.

Second, China's industrial structure was upgraded. The trend of high-end, intelligent and green development in the manufacturing industry became more pronounced. The value added of equipment manufacturing and high-tech manufacturing enterprises above designated size increased 9.2% and 9.4% respectively year on year, accounting for 36.8% and 17.1% of the total industrial value added of enterprises above designated size. Production of new products such as high-speed trains, industrial robots, and servers maintained rapid growth, and the green content of industry also increased. Production of new energy vehicles exceeded 16 million units, with production and sales volume remaining the world's largest for 11 consecutive years. Growth of green products such as wind turbine generators and bio-based chemical fibers also maintained a high level.

Third, industrial transformation and upgrading progressed. Relying on technological breakthroughs, digital empowerment and green transformation, traditional industries also cultivated new growth drivers. The value added of petroleum processing enterprises above designated size increased 6.7% year on year, with the biofuel processing sector up 16.8%. The chemical fiber industry increased 8.2%, with bio-based materials manufacturing up 27.9%. Industrial transformation continued to deepen, driving a gradual recovery in corporate profits. From January to November, in the building materials and chemical industries, profits of graphite and carbon product manufacturing enterprises above designated size increased 73.9% year on year, and biochemical pesticide and microbial pesticide manufacturing increased 48.3%.

Fourth, manufacturing enterprises' profitability improved. In the first 11 months, profits of manufacturing enterprises above designated size increased 5% year on year, compared with a decline of 4.6% in the same period last year. Profits of equipment manufacturing and high-tech manufacturing rose 7.7% and 10% year on year, respectively, providing strong support for improved profitability among industrial enterprises.

Overall, in 2025, industrial production maintained stable growth, the industrial structure was optimized, and the advantages of a complete industrial system became more prominent. At the same time, the impact of changes in the external environment gradually deepened, domestic transformation and upgrading faced growing pains, and some enterprises still encountered considerable difficulties in production and operations. Moving ahead, we must promote the deep integration of technological innovation and industrial innovation, continuously optimize the industrial structure, accelerate the cultivation of new quality productive forces, and promote the sound development of the industrial economy.

Thank you.