CCTV:

In the first quarter of 2026, the value added of industrial enterprises above designated size nationwide grew 6.1%, up 1.1 percentage points from the fourth quarter of last year. How do you assess the overall performance of industrial operations in the first quarter? Thank you.

Zhang Yunming:

Thanks for your question. I'll take this one. Since the beginning of this year, the industrial economy has broadly trended in a positive direction while maintaining steady progress, effectively serving as a ballast for the overall macroeconomic situation. Overall, three characteristics stand out.

First, the industrial economy grew rapidly. By industry, key sectors have played a significant driving role, with 34 of 41 major industrial categories achieving year-on-year growth in value added. Industries such as electronics, electrical machinery and equipment, chemicals, petrochemicals, general equipment, and special equipment contributed 51.4% to industrial growth. By region, major industrial provinces have played a prominent role, with the value added of industrial enterprises above designated size in the 10 leading industrial provinces growing about 7.2%. Zhejiang, Henan, Jiangsu and Hubei maintained relatively rapid growth, even against a high base from the same period last year.

Second, the industrial structure has continued to improve. The value added of equipment manufacturing enterprises above designated size grew 8.9% year on year, contributing nearly 50% to overall value-added growth among enterprises above designated size. The value added of high-tech manufacturing enterprises above designated size increased 12.5% year on year, 3.1 percentage points faster than last year, with emerging sectors such as integrated circuit manufacturing and biopharmaceutical manufacturing posting rapid growth. Technological changes such as AI have accelerated the adoption of new technologies and products in industries such as consumer electronics. The output of high-tech, high-value-added products such as robot reducers and memory chips has grown more than 40%.

Third, positive momentum has continued to build. In the first two months, profits of industrial enterprises above designated size grew 15.2% year on year, accelerating 14.6 percentage points compared with last year. Production and efficiency among small- and medium-sized enterprises above designated size both exceeded the average level of industrial enterprises above designated size. Manufacturing investment has stabilized and rebounded, growing 4.1% year on year in the first quarter, with the growth rate accelerating 3.5 percentage points from last year. Investment in emerging sectors is trending strongly. Industries such as computer and office equipment manufacturing and aerospace and equipment manufacturing have achieved double-digit investment growth. In March, the Producer Price Index (PPI) rose 0.5% year on year, ending 41 consecutive months of decline. The Purchasing Managers' Index (PMI) for the manufacturing sector rose 1.4 percentage points from the previous month, entering expansionary territory.

Currently, domestic effective demand is insufficient, cash flow is tightening for SMEs and some industries, and the operation of industries such as petrochemicals is disrupted. Consolidating the positive momentum of the industrial economy still requires a lot of effort. Going forward, we will adhere to the general principle of seeking progress while maintaining stability, focus on expanding demand, improving quality and cultivating new growth drivers, further enhance the efficiency and effectiveness of industrial economic operations, and continuously consolidate the positive trend of recovery. Thank you.