21st Century Business Herald:

The data shows that industrial production accelerated somewhat in August. How do you assess industrial production in August? And what is the outlook for the industrial sector going forward? Thank you.

Fu Linghui:

I would like to invite Ms. Wang to take your questions.

Wang Guanhua:

Thank you for your question. In August, amid complex and volatile environment both at home and abroad, the resilience of China's industrial and supply chains became even more evident. The industrial economy grew steadily, with progress seen in both quality and innovation. This is mainly reflected in four aspects:

First, the growth rate of industrial production picked up. In August, the value added of industrial enterprises above the designated size increased by 5.2% year on year, 0.7 percentage point faster than the previous month. Manufacturing acts as the foundation of the real economy and lies at the heart of the industrial sector. Its value added grew by 6.1%, 0.9 percentage point faster than the growth rate of industrial value added as a whole. As the world's largest manufacturing country, China has achieved such a growth rate despite the enormous scale of its manufacturing sector. This is no easy feat and is highly commendable. In terms of the breadth of the recovery, more than 60% of industries and regions saw their growth rates pick up from the previous month, with sectors such as electronics, electrical machinery, electric power, and automobiles providing strong impetus for industrial growth.

Second, the supporting role of new growth drivers has become more prominent. In August, new growth drivers, represented by high-tech manufacturing and digital product manufacturing, contributed more than 60% to the growth of industrial enterprises above the designated size, providing playing a prominent role in supporting and leading growth. As the cornerstone of the industrial economy, the equipment manufacturing industry saw its value added groew by 12.1% year on year, with all eight equipment manufacturing subsectors achieving relatively rapid growth. In particular, the electronics sector expanded by 17.2% and made the largest contribution to industrial growth among all industrial sectors. The high-tech manufacturing sector, characterized by relatively high technological content and value added, continued to lead the way, with the integrated circuit manufacturing and intelligent in-vehicle equipment manufacturing industries maintaining growth of over 20%. The application of new technologies, such as embodied intelligence and human-robot collaboration, has boosted the rapid development of the robotics industry, with output of robot reducers and industrial robots increasing by 11.4% and 34.6%, respectively. The second World Humanoid Robot Games, held in August, attracted widespread attention. During the competition, humanoid robots continued to set new performance records, surpassing human records in several metrics. Outside the arena, many participating robots secured orders thanks to their outstanding performances, marking a transition from competing on the field to working in factories and being put to use in homes. Data show that China's share of global humanoid robot shipments rose to 97%.

Third, exports of industrial products continued to grow rapidly at a double-digit rate. In August, the export delivery value of industrial enterprises above the designated size increased by 11.1% year on year, maintaining double-digit growth for the fifth consecutive month. The equipment manufacturing sector is the dominant force of industrial product exports, accounting for around 75% of the export delivery value. Its products are widely recognized in the international market for their competitiveness, and exports of high-end equipment products have become an important engine of foreign trade growth. From January to August, China's automobile exports grew by 47.1% year on year, while exports of servers, optical modules and electronic components all achieved double-digit growth.

Fourth, the quality and efficiency of development have continued to steadily improve. In terms of energy consumption, China has supported higher-quality industrial growth with lower energy consumption. In August, energy consumption per unit of value added of industrial enterprises above designated size decreased by 7.2% year on year, and the proportion share of total power electricity generation generated by enterprises above designated size from clean energy sources such as hydropower, wind, nuclear and solar power increased by 2.4 percentage points year on year. This decrease and increase demonstrates that China's industrial economy has formed a positive momentum of coordinated progress in carbon reduction, green expansion and growth. From the perspective of industrial chain resilience, specialized and sophisticated "little giant" enterprises, as a major force for innovation in niche areas, have continued to make breakthroughs in key technologies, effectively shored up weak links in industrial chains, and enhanced the resilience of industrial and supply chains. In August, the value added of "little giant" enterprises above designated size increased by 12.8% year on year. In terms of profitability, thanks to expanded production and a rebound in product prices this year, the profits of industrial enterprises above designated size increased by 17.6% from January to July, and the profit margin on revenue also improved year on year.

While acknowledging the positive achievements in the industrial economy, we must also be aware that the global economic recovery is currently sluggish, domestic effective demand is insufficient, and enterprises in some industries still face many practical difficulties in production and operation. Targeted measures are therefore needed to address these challenges. Overall, China has a complete industrial system, strong development resilience and huge market potential. New growth drivers are constantly emerging in high-end manufacturing, green manufacturing, intelligent upgrading and other fields. Various reform measures and supportive policies continue to deliver results, and the fundamentals of the industrial economy maintaining steady growth and improving in quality will not change. Thank you.

Zhou Jianshe:

Last question, please.