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Industrial Economy Sees the Best Performance in the Past Three Years

Submit Time:01-09-2017 | Zoom In | Zoom Out

Author:Yang Liang Liu Kun | Source:Guangming Daily July 26, 2017

Abstract:

【Current economic situation】 

"In the first half of this year, the industrial added value for the enterprises above a certain scale grew by 6.9% on a year-on-year basis, with the growth rate higher than that in the same period of last year by 0.9 percentage points, the best performance in the past three years.” The press conference on industry and communication development in the first half of the year held by the Information Office of the State Council on July 25 disclosed that China's industrial economy has maintained a momentum of steady and sound growth in the first half of the year, with the main highlights reflected in stable growth of industrial production, continuous improvement of benefits, accelerated transition between new and old drivers, active advancement of structural adjustment and main indictors better than expected.  

Industrial economy has maintained a stable performance with good momentum for growth 

From the perspective of industrial sectors, electronic and equipment manufacturing industries continued to lead the growth of industrial sectors as the value added of the two sectors grew by 13.9% and 10.9% respectively in the first half of the year. The benefit conditions of raw material industry experienced a steady recovery. Profits grew by 46.2% in the first 5 months. The consumer goods industry maintained a stable performance on the whole. The added value increased by 7.7% on a year-on-year basis in the first half year, higher than the overall industrial growth rate by 0.8 percentage points. Profits grew by 10.6% in the first 5 months, and the medium- and high-end consumption supply level increased to some extent.  

"From the perspective of regional development, the growth rate of industrial value added was higher than the national average in Jiangsu, Guangdong, Shandong, Henan and Zhejiang which ranked top five of national total industrial output. Large industrial provinces continued to increase their support in stable growth of industries. Eastern coastal provinces with strong innovation capability and high input of technical transformation maintained a stable growth,” said by Zhang Feng, the chief engineer and spokesperson of the Ministry of Industry and Information Technology. 

Meanwhile, northeastern and western provinces showed a good momentum. In the first half of the year, the industrial growth rate was higher than the national average in Ningxia, Yunnan, Qinghai, etc. In Liaoning, the decrease of industrial growth rate was narrowed down by 3.4% on a year-on-year basis. In Xinjiang and some other regions, profits increased rapidly which experienced significant decrease in the same period last year.  

"In the first half of the year, the value added of electronic and equipment manufacturing increased by 13.9% and 10.9% respectively. The value added of high-tech manufacturing increased by 13.1% on a year-on-year basis, higher than the overall industry by 6.2%. The output of industrial robots and integrated circuits increased by 52.3% and 23.8% respectively.” In the opinion of Zheng Lixin, the spokesperson of the Ministry of Industry and Information Technology and Director of the Bureau of Operation Monitoring and Coordination, viewed from the benefits of industrial structural adjustment, the good power is growing, cultivation of new impetus is proceeding in an orderly manner, and emerging industries have made a significant leap.  

The growth of industrial profits has been accelerated greatly 

84.8% of production overcapacity of iron and steel for the whole year was cut in the first 5 months. The task of wiping out outdated steel production capacity was completed at the end of June; Regions were urged to cancel more than 200 enterprise-related security deposit projects of various types and return deposits of more than 30 billion yuan; The asset-liability ratio of industrial enterprises above a certain scale decreased by 0.7% on a year-on-year basis in late May. Data shows that steady progress was made in key work of supply-side structural reform of the industrial field.  

Under the influence of major measures such as the supply-side structural reform, the profits of upstream industries increased significantly and enterprise revenue was improved continuously. In the first 5 months, 38 out of 41 industrial sectors achieved a year-on-year growth in total profits. Main business income and profits of industrial enterprises above a certain scale increased by 13.5% and 22.7% respectively, up by 10.6% and 16.3% over the same period of last year respectively.  

“The PMI of small enterprises was 50.1% in June, putting an end to the condition of remaining within the contraction interval for 32 consecutive months; the producer price index (PPI) increased by 6.6% on a year-on-year basis in the first half of the year, with the positive growth maintained for 10 consecutive months.” Zhang Feng said that according to relevant indicators of industrial activities, good expectations are in view, which will lay a good foundation for smooth industrial operation in the second half of the year and realization of targets for the whole year.  

Looking forward to the second half of the year, Zhang Feng said we need to further consolidate the momentum of steady growth of industrial economy, develop the manufacturing industry vigorously, actively promote the transition between new and old drivers and strive to advance supply-side structural reform in the industrial field. 

Bigger steps have been taken in boosting Internet speed and cutting costs for Internet services 

In the first half of the year, the information communication industry in China maintained relatively rapid development; the income of Internet and relevant services increased by 19.8% over the previous year; the number of 4G mobile service users saw a net increase of 120 million and reached 890 million, accounting for 65% of all mobile users. Meanwhile, “Internet Plus”, sharing economy, etc. drove traditional industries to open up new space for development. Such products meeting consumption upgrading requirements as smart phones and high-definition televisions maintained rapid growth.  

It has been three years since China proposed to boost Internet speed and lower prices. People are concerned about the overall effectiveness of boosting Internet speed and cutting costs.  

"The work of boosting Internet speed and cutting costs is well under way now.” said by Zhang Feng. Currently, various measures for lowering prices are being implemented. From May 1, China Mobile, China Telecom and China Unicom significantly decreased the rates for international calls in main directions to 0.49~0.99 yuan per minute. The average decrease was up to 90%. Meanwhile, the rates for broadband services were lowered successively, with the decrease exceeding 15%. Further efforts were made to intensify international settlement negotiations and lower rates for international calls of more directions gradually.  

The data show that China has taken bigger steps in boosting Internet speed and cutting costs for Internet service in the first half of the year. The popularization of stable broadband services increased to 67%, and popularization of mobile broadband users increased to 77.4%, both achieving the annual targets ahead of time. As of the first half of 2017, all cities in China have been linked up to fiber-optic networks. The total number of 4G stations has reached 2.99 million.  

Also, boosting Internet speed and cutting costs for Internet service have promoted constant development of digital economy in China. According to the White Paper of Digital Economic Development in China (2017) released by China Academy of Information and Communication Technology, the Chinese digital economic scale reached 22.6 trillion yuan in 2016, with the year-on-year growth exceeding 18.9% nominally, significantly higher than the GDP growth rate of the year, and accounting for 30.3% of GDP.  


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