A robot operates equipment on the assembly line of an automaker in Xi’an, Shaanxi province. YUAN JINGZHI/FOR CHINA DAILY
China is confident and capable of stabilizing its sprawling industrial economy, which will underpin the country’s high-quality growth and give stability to global supply chains amid rising external uncertainties and disruptions to world trade systems, officials and experts said on Friday.
While acknowledging short-term challenges, they stressed that China’s industrial economy — characterized by its strong resilience, vast potential and vibrant dynamism — will maintain its upward trajectory.
The remarks came after China’s value-added industrial output rose 6.5 percent year-on-year in the first quarter of this year, an increase of 0.8 percentage point from the last quarter.
Xie Shaofeng, chief engineer of the Ministry of Industry and Information Technology, China’s top industry regulator, said at a news conference that the complexity, severity and unpredictability of the external environment have intensified, severely damaging global trade rules and supply chains.
“While this impacts China’s industrial development, we are confident in overcoming these challenges,” Xie said.
According to him, China’s industrial economy contributed 36.3 percent to overall GDP growth in the first quarter, reinforcing its “anchor” role for the economy.
Specifically, the value-added industrial output of equipment manufacturing increased by 10.9 percent year-on-year in the first quarter, up 3.2 percentage points compared to the number for the full previous year.
Meanwhile, industrial private investment maintained double-digit growth, reflecting rising business confidence, and the purchasing managers’ index for manufacturing has stayed in expansionary territory for two consecutive months, signaling a steady recovery in production and demand, according to the ministry.
“Since the beginning of this year, China’s industrial and information technology sectors have demonstrated sound growth, laying a solid foundation for achieving the country’s annual economic target,” Xie said.
Wen Bin, chief economist at China Minsheng Bank, said that China’s value-added industrial output in March grew 7.7 percent year-on-year, exceeding market expectations on the back of stronger domestic demand and favorable government policies.
Wen said: “Expanded policy measures have effectively stimulated consumption and accelerated growth in high-tech industries. These efforts have reinforced confidence in China’s ability to navigate global headwinds.”
Wang Qing, chief macroeconomic analyst at Golden Credit Rating International, said that despite China-US trade frictions, the export delivery value of industrial enterprises jumped 7.7 percent year-on-year in March, up 1.5 percentage points from January-February.
Wang said this was a result of the “front-loading of exports” ahead of potential tariffs and resilient global demand.
However, he warned that the positive export momentum may falter, as the impact of trade frictions will likely materialize, leading to a slowdown in external demand. This could put greater pressure on industrial production.
Well aware of the challenges, the ministry said it plans to introduce a new round of stabilization and growth plans, along with digital transformation plans, for industries such as electronic information manufacturing, machinery, automotive and electronic equipment.
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